State to answer newspapersStar-Bulletin staff
request for $21 million bond
State attorneys say they will take appropriate action after reviewing a motion by the owners of Honolulu's two daily newspapers asking the state to post a $21 million bond to cover possible losses due to the delay in closing the Honolulu Star-Bulletin.
The state has 11 days to respond to the motion, filed yesterday in federal court.
U.S. District Judge Alan C. Kay scheduled a March 28 hearing date.
The newspaper owners say a $10,000 bond the state posted when the court granted a preliminary injunction blocking the closure is insufficient to cover costs and damages suffered if they ultimately prevail.
Trial is set for Sept. 19 on the state's suit that alleges anti-trust laws were violated by an agreement to end a joint operating agreement between the Honolulu Advertiser and the Star-Bulletin, and close the Star-Bulletin for a $26.5 million payment.
Bulletin closing archive