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Former Hawaii company
Dillingham files for bankruptcy


Star-Bulletin staff and wire

PLEASANTON, Calif. >> Dillingham Construction, a former Hawaii construction company that dredged the main channel into Pearl Harbor, has filed for Chapter 11 bankruptcy.

The company, now based in Pleasanton, Calif., plans to move to Florida as a smaller operation.

The company grew out of Hawaiian Dredging Construction Co., founded in the 1880s to build harbors connecting with an Oahu railway line built by Benjamin F. Dillingham. That gave rise to Dillingham Corp., which in the 1980s moved its headquarters to Pleasanton.

Dillingham grew to build dams, airfields, high-rise offices, hotels and embassies around the world, including San Francisco's Embarcadero One and Wells Fargo Building. It also helped repair the San Francisco-Oakland Bay Bridge after the 1989 Loma Prieta earthquake

But in the past decade, Dillingham became embroiled in disputes with government customers, most notably Los Angeles and San Francisco. The company said it was owed millions. The cities said the company overbilled and had other problems.

When Dillingham emerges from bankruptcy protection in four to six months, it will be headquartered in Tallahassee, company officials said. The reorganized firm will have about 400 employees, down from a peak of 1,500.

Hawaiian Dredging remains in Hawaii as the biggest construction contracting firm in the islands with around 500 employees, depending on the work load.

It no longer has any connection to Dillingham. Last May, Hawaiian Dredging was sold to a Japan-owned company, Kajima U.S.A. Inc., and was able to keep its name and stay in the islands, continuing under the direction of William Wilson, president and chief executive officer.



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