Roberts to pay Aloha $500,000 to settle suit
The deal stems from Roberts’ takeover of the now-defunct Trans Hawaiian Services
Aloha Airlines has agreed to settle a lawsuit against Roberts Hawaii and affiliated parties for $510,000 and separately expects to receive an additional $300,000 in a creditor distribution from the now-defunct Trans Hawaiian Services.
The airline filed a motion in federal Bankruptcy Court on Thursday seeking approval of the settlement with Roberts Hawaii, a tour and ground transportation company, for $500,000. The settlement includes an agreement by Roberts Hawaii to purchase $200,000 worth of Aloha tickets for its customers.
In addition, Aloha reached a settlement to receive $10,000 from International Management and Services Group Inc. and Raymond Miyashiro. International Management, owned by Miyashiro, had owned all of Trans Hawaiian's stock.
Aloha filed the lawsuit in state Circuit Court in October 2004 because of money owed by Trans Hawaiian for tickets. Trans Hawaiian, purchased by Roberts Hawaii in 2000, had filed for bankruptcy in 2001.
The lawsuit was moved to federal Bankruptcy Court in November 2004, where a motion on the settlement will be heard before Judge Lloyd King on Nov. 28. It will immediately precede a hearing before Judge Robert Faris that will determine whether Aloha Airlines can emerge from bankruptcy.
The airline said in the motion in the Roberts Hawaii case that the two sides had reached a settlement to avoid costly and time-consuming litigation.
In the other matter, the $300,000 that Aloha expects to receive from the Trans Hawaiian bankruptcy will come in addition to about $1.3 million the carrier received in October. That will bring the amount Aloha will receive to $1.6 million of the $2.5 million it initially sought as the largest creditor in Trans Hawaiian's bankruptcy.