Ex-HAL execs
file $1.5 mil
in claimsPaul Casey, former chief of
bankrupt Hawaiian Airlines,
is seeking nearly $1 million
Two former high-ranking Hawaiian Airlines officers who worked with ousted Chairman and Chief Executive John Adams have filed claims with U.S. Bankruptcy Court totaling more than $1.5 million.
The amounts, which provide a glimpse at how lucrative some executives' severance packages can be, were among hundreds of claims that poured in just before -- or in some cases after -- Monday's filing deadline.
Paul Casey, the vice chairman, president and CEO who left the airline on June 30, 2002, is seeking $993,705. Bob Zoller, the former president and chief operating officer who left the company April 15, 2002, put in a claim for $508,936.51.
The last-minute rush of claims coincided with a Bankruptcy Court hearing yesterday in which parent company Hawaiian Holdings Inc. received a mixed ruling on a discovery motion. Bankruptcy Judge Robert Faris lifted his stay on discovery to enable Hawaiian Holdings to receive financial information it has been requesting from Hawaiian Airlines. However, Faris limited the ruling by keeping in place a stay on discovery related to the suspension of a $4.25 million payment to the Hawaiian pilots' pension plan.
Faris, at the request of trustee attorney Bruce Bennett and the Air Line Pilots Association, also delayed a scheduled Feb. 27 ruling on the pension payment for approximately one month, or until March 29, so that the two sides can continue discussions.
Hawaiian Holdings attorney Guy Neal, who said the parent company has now received a copy of trustee Joshua Gotbaum's business plan, argued that Hawaiian Holdings had been attempting to secure certain financial information from Gotbaum since September so that it can prepare a possible reorganization plan. But Bennett argued it was "distractive and expensive" to conduct the discovery that Hawaiian Holdings was seeking. Bennett also said it was premature until the trustee and the pilots union come to some type of decision regarding the pension plan.
Ultimately, Faris decided that allowing Hawaiian Holdings limited discovery wouldn't impede the trustee and would allow Hawaiian Holdings to gain more of the information needed to file its own reorganization plan. Faris said parties with the capacity to file a plan "may be useful in this case."
Meanwhile, Casey, who at one time was seriously considered as a trustee candidate until being disqualified because of his severance agreement, has a big financial stake at risk. In his filing, Casey said his severance agreement with the airline provides him 36 months of annual base salary in bimonthly payments beginning July 20, 2002 and ending on July 5, 2004; an automobile allowance through June 30, 2005; payment of all dues and similar charges at the Oahu Country Club, Honolulu Club and Outrigger Canoe Club through June 30, 2005; a lump sum payment in lieu of medical and dental benefits; a lump sum payment in lieu of participation in the airline's 401(k) plan; and two executive life insurance policies, as well as coverage under Hawaiian Airlines' group life insurance plan until the anniversary rollover date for each plan in 2005. Casey has a home on Oahu but works for a travel software company in Bangkok, Thailand.
Zoller, the former president and chief operating officer who left the company April 15, 2002, sought salary continuation payments of $412,500, other severance payments of $50,000 and moving expense reimbursement of $46,436.51. He lives in Texas.
Among other former Hawaiian executives, John Happ, the former senior vice president for marketing and sales who has a similar job now with Indianapolis-based ATA, is seeking either $437,277.91 as part of his employment agreement or $410,849.34 from his separation agreement. Both figures were mentioned on his claim. In December, Faris ruled against Gotbaum's motion and said Happ can't be forced to relinquish his ATA post because he had signed a noncompete agreement with Hawaiian.
Lyn Flanigan Anzai, the former vice president for legal and government affairs, is seeking $271,669.04 based on her employment and separation agreements. Anzai is now executive director of the Hawaii State Bar Association.
Brian Hermansader, the former vice president for maintenance and engineering, is seeking $164,567.27 based on his employment and separation agreement.
Hawaiian Airlines spokesman Keoni Wagner, who is the vice president of public affairs, also filed a claim for $8,172.57 for unpaid compensation.
Sometimes in bankruptcy filings, claims that are filed are estimates to protect parties and save them a place in the payout process. In other cases, though, the amounts sought can be supported by documents.
Among other notable claims:
>> More than $236 million from the Pension Benefit Guaranty Corp. , a federal agency that pays retirement benefits when a company's pension plan fails, for unpaid minimum funding contributions and benefit liabilities, Internal Revenue Service taxes and penalties, and other amounts to be determinedOther claims that previously have been announced include $110.1 million from aircraft lessor Ansett Worldwide; $40.4 million from aircraft lessor Boeing Capital Corp. which will have a greater claim once it reaches a lease restructuring agreement on 14 other planes; and Hawaiian Airlines pilot Robert Konop, who has a $40 million claim for unlawful access to his Web site as well as smaller claims for other issues. Aircraft lessor International Lease Finance Corp. also has filed a claim for unspecified damages.>> $38 million from Trina-Lei K. Lake of the Big Island for copyright violations;
>> $23 million from Wells Fargo Bank for a lease agreement for two DC-10 aircraft;
>> $11 million from American Airlines, which provides aircraft maintenance services;
>> $6.4 million from Bank of Hawaii , which provides general banking services;
>> $2 million from Delta Airlines, which provides aircraft maintenance services;
>> 1.9 million from United Technologies Corp.'s Pratt & Whitney Division, which provides engine maintenance and repairs;
>> $1.3 million from the Association of Flight Attendants;
>> $1.1 million from the state of Hawaii for amounts paid for air transportation ticket coupons;
>> $1.1 million from Honolulu-based caterer Gate Gourmet;
>> $817,524 from Starr Seigle Communications Inc.