Hawaiian Air
stock halted after
parent’s bill not paidHawaiian Holdings owes
money to Mellon Bank,
its stock transfer agent
The American Stock Exchange halted trading in Hawaiian Airlines' parent yesterday after the company failed to pay to transfer agent Mellon Bank.
Hawaiian Holdings Inc. last traded at 80 cents, up 2 cents for the day. The stock was halted with more than two hours left in the trading session. Hawaiian Holdings' only operating subsidiary is the airline, which has been in Chapter 11 reorganization bankruptcy since March 21.
Attorney Judith Thoyer, who represents the parent company for New York law firm Paul, Weiss, Rifkind, Wharton & Garrison, said she couldn't comment on whether the bill would be paid and didn't know what would happen to the stock. Thoyer said she was surprised the stock was halted yesterday because she said she didn't expect the action to happen until this morning.
The holding company will file a statement today with the Securities and Exchange Commission, she said.
"If the bill gets paid, (the stock) possibly could get reinstated," Thoyer said. "Right now, there's no transfer agent so the shares can't be transferred."
A transfer agent is responsible for keeping track of stock ownership that occurs through the buying and selling of a security.
Thoyer wouldn't elaborate on the amount that is owed except to say it was "not a very big bill."
"The holding company is separate from Hawaiian Airlines and it doesn't have separate funds," Thoyer said.
In fact, it was a $500,000 transfer by the airline to the holding company on the eve of the bankruptcy filing that contributed to U.S. Bankruptcy Court Judge Robert Faris' decision to order the appointment of a trustee.
Hawaiian spokesman Keoni Wagner referred all questions to Thoyer.
"I don't have any information and I don't have any comment," he said.