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Judge orders
Bank of Honolulu
owner to pay
$1 million

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By Suzanne Tswei
Star-Bulletin

U.S. Bankruptcy Judge Lloyd King yesterday approved requests for payments to a dozen banks and casinos that are owed money by bankrupt businessman Sukamto Sia, former owner of the now-defunct Bank of Honolulu.

King approved a $1.1 million payout, but only about half of the money will be distributed while the bankruptcy trustee investigates claims for the remaining amount. Trustee Guido Giacometti said he expects payments to be distributed by early next year.

The dozen creditors approved to receive payouts include Desert Palace, Las Vegas Hilton, Mirage Casino, London Clubs in England and American Express. The payouts reflect only a fraction of the claims. Desert Palace said it is owed more than $10 million, but is approved to receive less than $50,000.

Sia filed bankruptcy two years ago, after his arrest in Las Vegas in connection with $13.5 million in gambling debts that he is accused of trying to pay with bad checks. In his bankruptcy filing, he listed debts of nearly $300 million, some as gambling losses.

While saying the payouts are good news for creditors, Giacometti said "unfortunately this is a small amount of what they are owed." Claims by Sia's creditors total more than $200 million, but the eventual payouts may amount to less then a penny for each dollar owed, he said.

King also approved compensation requests, totally about $287,000, to the trustee, his attorneys and accountants.