Former union exec
to lead Hawaiian committee

David Urrea worked the company
through its last bankruptcy filing

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By Dave Segal
dsegal@starbulletin.com

A Hawaiian Airlines pilot and former union leader who helped the company navigate its last bankruptcy will head the creditors committee involved with the carrier's latest Chapter 11 filing.

David Urrea, master executive council chairman of the Air Line Pilots Association from 1988 to 1994 and a member of Hawaiian's board from 1994 to 1996, was chosen yesterday during a conference call of the seven-member committee. Hawaiian, which filed for Chapter 11 on March 21, previously filed for bankruptcy in 1993 and emerged the following year.

Jack Bates, chairman and chief executive officer of Starr Seigle Communications Inc., was named vice chairman. Starr Seigle has $570,000 in claims.

Accounting firm KPMG LLP was chosen as the committee's financial adviser.

Hawaiian Airlines, which filed for Chapter 11 after saying it was unable to renegotiate leases with its three aircraft lessors, has 60 days from that time to reach terms with Boeing Capital Corp., International Lease Finance Corp., and Ansett Worldwide. Hawaiian, due to report its full-year financial results no later than Tuesday, also has been preparing a response to a Boeing Capital motion requesting a trustee be appointed to replace Hawaiian's management during bankruptcy proceedings.

Hawaiian Airlines Chairman and CEO John Adams mailed a letter to shareholders last week defending a $25 million tender offer that has been criticized by Boeing Capital and others. Adams called Boeing Capital's trustee request a distraction and referred to it as "drastic action." Adams reiterated that the tender offer was "both legal and justified" and said it compensated "all shareholders for their continued support and patience."

The next key decision by the creditors committee will be whether it will side with Boeing Capital for a trustee. U.S. Bankruptcy Court Judge Robert Faris will hear arguments May 6.