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Search narrows for airline trustee

The new search for a Hawaiian Airlines trustee has been narrowed to about six candidates, including some names that were not on the original list, a source close to the situation said.

U.S. Trustee Steven Katzman, who conducted a conference call with the key parties Wednesday, said he's sticking with his timetable of having someone named by the end of this week.

However, Katzman added, "if it doesn't happen by then, it will be shortly thereafter."

Rono Dutta, former president of United Airlines parent UAL Corp.; and Bill Compton, former chief executive of Trans World Airlines, both received strong consideration during the initial search but are not on the short list this time.

Joshua Gotbaum, an investment banker with airline and restructuring experience, also was a strong contender last time and was one of the names discussed Wednesday. However, he said last night he had not been contacted. Gotbaum is a former executive associate director and controller of the U.S. Office of Management and Budget.

Katzman, who will make the final decision, was forced to renew the trustee search after former Liberty House executive John Monahan announced Tuesday he was resigning as Hawaiian's trustee after less than a month on the job. Monahan cited personal reasons for his decision. Sources said the decision was prompted by health issues.

Despite his resignation, though, Monahan showed up for work Wednesday.

"He did say he was going to be available for the transition, and he intends to keep things moving until his replacement is in place," Hawaiian spokesman Keoni Wagner said yesterday.

Curtis Ching, a Honolulu-based U.S. Trustee trial attorney who has coordinated both searches, said it's the U.S. Trustee's stance that Monahan still has the authority to make decisions until a replacement is found and his resignation is officially accepted. Ching said yesterday he thought it was unlikely that a trustee would be named this week.

However, Katzman arrived on Oahu last night to expedite matters after attending the 9th Circuit Judicial Conference on Kauai earlier in the week.

Meanwhile, U.S. Bankruptcy Court Judge Robert Faris yesterday approved a second 30-day extension reached last week between Hawaiian and Boeing Capital Corp. in which the aircraft lessor cannot take any action to repossess the 16 planes it leases to the airline until July 31.

A&B maintains 22.5-cent dividend

Alexander & Baldwin Inc. said yesterday its board of directors has authorized a third-quarter dividend of 22.5 cents a share, payable Sept. 4 to shareholders of record at the close of business Aug. 7.

A&B has now maintained its dividend at the current level for 23 straight quarters. The last time the board raised the payout was the fourth quarter of 1997 when it boosted the dividend from 22 cents. A&B's current dividend yield is 3.4 percent.

Court overturns Microsoft order

RICHMOND, Va. >> Microsoft Corp. does not have to include a rival's software in its Windows operating system, a federal appeals court ruled yesterday in overturning a judge's order.

Though the court upheld a preliminary injunction barring Microsoft from distributing its own version of Java from Sun Microsystems Inc., that requirement will have limited effect because Microsoft already has started phasing it out under a previous settlement with Sun.

PeopleSoft chases deals to stay alive

SAN FRANCISCO >> With its survival at stake, business software maker PeopleSoft Inc. is racing to close sales this week so it can wield customer loyalty as a club against its unwelcome suitor, Oracle Corp.

It's a daunting challenge. PeopleSoft must persuade squeamish customers to buy expensive, complex software even though the company's fate remains uncertain, with Oracle pressing a hostile $6.3 billion takeover bid.

The faceoff is making PeopleSoft's current and prospective customers antsy because they fear the takeover battle will create chaos in their technology departments.

The software applications made by PeopleSoft, Oracle and other rivals have become indispensable tools for businesses, schools and government agencies. Customers use the software to manage finances, personnel, customers and suppliers.

In other news ...

>> More than 300 companies that staged hot initial public offerings during the tech boom agreed to pay investors $1 billion to settle allegations they were complicit in schemes by investment banks to rig stock sales to benefit themselves and favored customers.

>> Eric S. Sorkin became the third former Rite Aid Corp. executive to plead guilty yesterday in the pharmacy chain's accounting-fraud case, and a judge gave the company's former chief counsel further time to decide whether to face a trial or change his innocent plea.

>> Abbott Laboratories Inc. will take a $622 million charge in the second quarter to settle a civil and criminal investigation of marketing practices involving its Ross Products business.

>> Japan's unemployment rate stood at near-record 5.4 percent for the third straight month in May.

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[Hawaii Inc.]

New jobs

>> John Ford will manage the new Honolulu office of SWCA Environmental Consultants. Ford is a program director and senior biologist with Phoenix, Ariz.-based SWCA. He has nearly 30 years of experience in environmental projects throughout Hawaii and the Pacific Rim, most recently as a program manager with Geo InSight International. The new office, intended to serve public and private clients throughout the Pacific islands, is focused on endangered species and water resource consulting services.

>> Patrick Saka has been named publisher of Gannett's "101 Things to Do" magazine series for Hawaii, Oahu, Kauai and Maui. He will also become operations manager for the Internet site hawaii.com, a partnership between Gannett and Stephens Media Group. He has been publisher and general manager of The Maui News and Hawaii Publications Inc., which he joined in 1986 as controller.

>> Marcela Lynch has joined Caron B. Realty as a sales specialist. She will handle the office's administrative tasks.

>> Coldwell Banker Pacific Properties has hired H. Pepi Pesentheiner and Amy Ocasio as sales associates in its Kahala office. Pesentheiner was most recently the general manager of Eurotours Hawaii Inc. Ocasio worked for Bank of America's multinational corporate lending division in Tokyo. 

>> Mark Renusch has joined the Chemistri creative staff in Troy, Mich. He was most recently an associate creative director for Starr Seigle Advertising in Honolulu.