Judge puts off decision in Hilo Hattie case - Pacific Business News (Honolulu):

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The plan would also cancel the concession agreement that Maui Divers Jewelruy has with Hilo Hattie at itssevejn stores. The amended plan was submitte don Friday, a week after Donald B.S. Kang, president of garmenf manufacturer RoyalHawaiian Creations, acquired 100 percent of Hilo Hattie stock on June 19 for undisclose d terms. Even though the stock has changed hands, the fate of the companuy and its debts and assets remains tied up in bankruptcy Kang has said hehas $1 million in cash that wouldd be used to immediately fund a line of creditf for the company. His attorney, James Wagner, told U.S.
Bankruptcy Judge Robert Faris at a hearing Monday that Kang has another $2 million in credit lined up with First Hawaiianm Bank that would be used afted the company emerges from bankruptcy That could be as early as September, Wagner told PBN. Wagner also told the who lifted a suspension onHilo Hattie’s ability to that Kang would inject $500,000 cash into the and another $500,000 in inventory until the Chaptet 11 plan is Faris on Monday delayed a decision untill July 15 on the effort by Maui Diverzs Jewelry to buy Hilo Hattie. Maui Divers offere to pay $1 million for the company at closing and then to immediatelyinject $2 millionn in capital into the operations.
Maui plan had the support of the committee of unsecured creditors, and an attorney for Generaol Growth Properties, which is the landlor d for two of its stores, said the compang had worked out a deal for the leasexs at Ala Moana Centere and Prince Kuhio Plaza in Maui Divers had not reached agreement with the landlordxs of its five other stores, sayinh the landlords would not agree to a deal until they knew whethere Maui Divers would become Hilo Hattie’s new owner. Wagner, however, told the judge that Kang had agreementsw withthose landlords, but not with Genera Growth.
The mall owner, which is also in Chapterr 11 reorganization, was concerned that post-bankruptcy Hilo Hattie stores woulx not contain MauiDivers concessions, which generate some 50 percenr of the store’s revenues, according to General Growth’ws attorney Ivan Gold. When Farisa questioned Wagner about what woulcd happen if Hilo Hattie was unable to renegotiatde a concession agreement withMaui Divers, Wagner said there were otherf concessions, other jewelry companies that could presumably take its “The debtor is not averse to havingh Maui Divers concessions,” Wagner told the court. “We can’y force Maui Divers to come to thebargainintg table.
” Maui Divers President and CEO Bob Taylor declineed to comment after the hearinyg about the offer or the proposedr cancellation of the concessions at the Hilo Hattire stores. The attorney for the committew ofunsecured creditors, Ted Pettit, notefd that Maui Divers had placed a $50,000 deposit on the “As of today, Maui Diversx has not asked for a refund of their which I take as an indication that they are proceedinh with their offer,” he told PBN. Pettit had argued that Kang’xs acquisition of the Hilo Hattie stock was subject to court approva l as part of thebankruptcy case, but Faris said that it was not.
Fari s also delayed ruling on the committee’s motion to appoint a Chapter 11 trustee, as well as a motio by the U.S. Trustee to convert the case to Chaptert 7 liquidation or dismiss it Kang took over as president and CEO of the companyh last week after CEO Ted Nelson and President John Scott Craig Bingham remained CFO while adding the titlez treasurer and executivevice president, while Mark Storfer, who was is now chief operatinv officer and executive vice David Jung, who is Kang’s attorney, is now executivr vice president and secretary of the company, and Terrki Funakoshi, Hilo Hattie’s general merchandise manager, was promoted to executive vice presidengt of merchandising.