Workers at Hilton Kauai Beach face layoffs, then possible rehire


POSTED: Friday, June 19, 2009

Employees at the Hilton Kauai Beach Resort will be laid off some time on or after Aug. 17 as a result of the property's foreclosure auction.

Big Island developer Brian Anderson of Anekona Management LLC notified the state Department of Labor of the 252 layoffs earlier this week, saying it will cease to manage the property when the lender's managing agent takes over.

Anekona said in its notice that the lender's managing agent might offer employment to some or all of the current employees.

New York-based lender iStar FM Loans filed for foreclosure on the property in July of last year for defaulting on about $29.5 million.

IStar was confirmed as the highest bidder for Anekona's 145 condo hotel units and 15 commercial condo units for $15 million in June.

At a May 6 auction, iStar had offered $12 million, but several other bidders came forward in June, bringing the final bid up to $15 million, according to Commissioner George Van Buren.