Hawaiian Holdings Inc., as expected, notified the U.S. Securities and Exchange Commission today that its annual financial report would be delayed up to 15 days due to the March 21 Chapter 11 bankruptcy filing of subsidiary Hawaiian Airlines. Hawaiian files with
SEC for extensionThe airline says it needs
more time to complete its
annual financial reportBy Dave Segal
dsegal@starbulletin.com
The company said in the SEC notification it has been unable to complete all the work necessary to meet today's deadline, due to the timing of the bankruptcy filing and the additional time and demands placed on management in pre-Chapter 11 negotiations.
Hawaiian, which received $15 million in labor cost reductions from its employees, said it filed for reorganization bankruptcy because it could not reach an agreement for $15 million in concessions from its three aircraft lessors -- Boeing Co., Ansett Worldwide and International Lease Finance Corp.
The airline, which unveiled some of its financial results when it filed for Chapter 11, reiterated in today's filing it expects a 2002 net loss of $58 million on operating revenue of approximately $632 million, compared with net income of $5 million on operating revenue of $512 million a year earlier.
Hawaiian's stock, which was halted when it filed for bankruptcy, remained suspended today at $1.50 on the American Stock Exchange.
The carrier said last week it was told by the AMEX that the stock wouldn't trade until the exchange has the opportunity to examine Hawaiian's annual financial report. The AMEX said if Hawaiian is unable to meet certain listing standards, it would be allowed to submit a compliance plan so that it could trade during a trial period.
If Hawaiian is unable to reach certain milestones during that trial period, then the stock would be delisted, the AMEX said. Hawaiian said if its stock gets delisted, it would then trade on the Over-the-Counter Bulletin Board.
Hawaiian Airlines