Reported by Star-Bulletin staff & wire
Wednesday, September 11, 1996
Reported by Star-Bulletin staff & wire
Wednesday, September 11, 1996
The state Aloha Tower Development Corp. yesterday granted its third extension to Mitsui Trust & Banking Co. to complete the sale of its $60 million mortgage to avoid foreclosure proceedings.
The retail and restaurant complex is located on state land along Honolulu Harbor.
Chad Griffith, an attorney for Mitsui, said the extra time will allow the parties to work out some technical details. Mitsui and the developer, Aloha Tower Associates, have declined to identify the buyer of the note but Mitsui has said it is close to completing the sale.
In July, Mitsui filed a foreclosure action against Aloha Tower Associates, alleging that the developers have made no payments on the $60 million loan. The developers, in turn, sued the bank in May, saying the lender reneged on more than $600 million in financing.
Both sides have agreed to put off the suit due to the pending sale.
Rights to purchase a total of 9,250,000 shares at $3.25 each were offered to employees and shareholders.
If fully subscribed that would raise $30 million in capital for the airline.
An investor group has agreed to buy 2,250,000 of the new shares, for a total of $7.3 million. And if employees and minority shareholders don't pick up enough shares through the offering, the investor group agreed to buy enough of them to bring $25 million of new capital into the airline.
The $3.25 price was calculated from the average closing price of Hawaiian Airlines' stock over 70 trading days ending July 25. Hawaiian's shares closed today unchanged at $3.31.