Hawaiian’s trustee,
creditors want to pick planThe bankrupt airline's Gotbaum and
unsecured creditors plan to file a motion
today seeking to select the winning
reorganization offer for the carrier
Hawaiian Airlines trustee Joshua Gotbaum and an unsecured creditors' committee are expected to file a federal Bankruptcy Court motion today asking the court to allow them to join forces to select the winning bidder in the carrier's reorganization, sources close to the situation said.
Although the joint bidding-procedure motion had been discussed for at least a couple of weeks, it wasn't decided until yesterday that the tandem would go forward.
That motion, sources said, is expected "to level the playing field" for all prospective bidders.
Under the proposed trustee-committee bidding procedures, the two entities would pick the best offer for reorganizing the airline and then team up with the winning bidder to present a reorganization plan to creditors for a vote, sources said.
A hearing is set for April 1.
The competing bidding procedures represents a small setback for turnaround firm Corporate Recovery Group LLC and aircraft lessor Boeing Capital Corp., which together filed a reorganization plan for the bankrupt airline Feb. 10. Under Boeing Capital's plan, bidders would have to sign confidentiality agreements, disclose the identity of their investors, make a deposit of at least $6 million and demonstrate they can close the transactions. Bidders would submit term sheets and the judge would select the winning bid to be sent out to creditors for a vote.
"A motion from someone else is just part of the process," Boeing Capital spokesman Russ Young said. "We'll appear in court, we'll argue the merits of our motions and the judge will make an informed decision."
Hawaiian Airlines parent Hawaiian Holdings Inc., which intends to file its own bidding procedures by March 15, said it couldn't comment specifically on the expected motion because it hadn't seen it.
But John Adams, who last May was ousted as chief of the airline in favor of a trustee, said "we support a process that is open, transparent and creates a level playing field for all constituents, including creditors and shareholders."
Adams still remains as chairman and CEO of Hawaiian Holdings and is the controlling member of AIP LLC, which controls more than 50 percent of the company's stock.
San Francisco-based Vx Capital Partners, which plans to enter a bid, has been lobbying for different procedures.
"We are committed to being active in the reorganization of the airline, and we've let it be known to the trustee and the unsecured committee that it's critical that there is a level playing field with respect to all participants," said Vx co-founder Stephen Compagni Portis. "We'll file a plan if we're selected as the winning bidder."