Reported by Star-Bulletin staff & wire
Wednesday, August 14, 1996
The company yesterday said a group of mainland investors has agreed to buy nearly 2.23 million shares - or about $7.2 million worth at the offering price of $3.25 a share - as part of Hawaiian's stock sale to shareholders.
Hawaiian Air plans to sell up to 12.1 million shares to stockholders of record Aug. 7. Airline Investors Partnership, the company's largest shareholder, cannot participate in the offering.
If the proceeds don't reach $25 million, the group buying the 2.23 million shares has agreed to buy additional stock to make up the difference, the company said.
Investors in the mainland group intend to purchase the shares as individuals, and none is expected to reach 5 percent ownership of the company's outstanding stock, the airline said.
Airline Investors Partnership owns a 67 percent stake in the company, but that will fall with the issuance of the new shares. Hawaiian has about 26.4 million shares outstanding, not counting what will be in the new offering.
The stock closed today unchanged from yesterday at $3.56 on the American Stock Exchange.
The monetary award yesterday follows a default judgement against Bellefontaine, who was charged with deceptive trade practices by the state after Hawaii investors lost millions of dollars.
Bellefontaine shut down his Asian American Corp. just over a year ago and left the islands after being charged with bilking investors by charging highly inflated prices for precious metal coins.
Attorney Jeff Brunton, who represented the state at trial, said he doubts any money ever will be recovered. Investors also shouldn't expect to see any of their money again, he said.
"The main object of the case was to put him out of business and preventing him from continuing to defraud investors," Brunton said.
Ralston spent $2.9 million to open the boutique nine months ago. Although sales had begun to pick up and doubled in the last month, it was too little too late, Ralston said.