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Hawaiian, Boeing still in lease talks

Hawaiian Airlines and Boeing Capital Corp., unable to reach lease-restructuring agreements on 14 aircraft, filed for an eighth extension yesterday that gives the two sides until April 15 to reach a deal.

The filing in U.S. Bankruptcy Court was expected since a March 15 deadline was fast approaching.

Without the extension, Boeing would have had the right to repossess its planes under federal bankruptcy law. However, Boeing said last month its hands were tied because of a reorganization plan it proposed with turnaround firm Corporate Recovery Group LLC that includes a restructured lease deal.

Hawaiian, whose entire fleet is 25 planes with the return of two 717s to Boeing Capital, is trying to renegotiate leases on three 767s and the 11 717s that comprise Hawaiian's interisland fleet. The airline already has restructured its leases on seven 767s with Ansett Worldwide and four 767s with International Lease Finance Corp.

Trustee Joshua Gotbaum, who is trying to steer the airline through reorganization, said Thursday he has not seen the terms of the restructured leases and that Boeing had kept its intention of filing a reorganization plan secretive.

Meanwhile, Jim Giddings, chairman of Hawaiian Airlines unit of the Air Line Pilots Association, said yesterday his membership favored any action by the bankruptcy court that establishes a fair process encouraging multiple investors to submit reorganization plans.

Giddings urged the court to provide for the release of Hawaiian Airlines' financial records so that employees and investors can compare competing proposals.

His comments were in reaction to a joint proposal by the trustee and the unsecured creditors' committee this week seeking a bidding process that would enable them to select the winning reorganization offer.

Analyst downgrades Bankoh

Bank of Hawaii Corp., which has risen more than 50 percent in the past 52 weeks, was downgraded to "hold" from "buy" by analyst Michael McMahon at Sandler O'Neill & Partners LP in San Francisco.

McMahon has a 12-month price target for the stock of $47. Shares of Bank of Hawaii closed yesterday at $47.15.

Of the eight analysts who cover the company, one rates the stock a "buy," six rate it a "hold" and one rates it a "sell."

Maui Land treasurer resigns

Maui Land & Pineapple Co. announced that Corporate Treasurer John Kreag has resigned to pursue other business interests.

Paul Meyer, executive vice president of finance, will assume the treasurer's duties.

[ BRIEFLY ]

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HAWAII
State ERS examining PIMCO allegations

Pacific Investment Management Co., manager of the world's biggest bond fund, is being reviewed by pension fund clients in California, Hawaii and Illinois after New Jersey regulators sued the firm for alleged improper trading.

The $167 billion California Public Employees' Retirement System, the biggest U.S. pension fund, the $8.5 billion Employees' Retirement System of Hawaii and the $12.5 billion Illinois State Universities Retirement System said they're examining allegations from New Jersey's Feb. 17 lawsuit.

Pimco, which oversees $370 billion from Newport Beach, Calif., allowed hedge fund Canary Capital Partners LLC to make so-called market-timing trades in two bond funds for a few months in 2003, New Jersey said in its lawsuit. Pimco investments chief Bill Gross said in a letter to investors last week that the trading didn't violate fund policies or harm shareholders.

Sales office to open for Kapiolani high-rise

KC Rainbow Development Co. will open the sales office tomorrow for its planned Moana Pacific high rise condominium project on Kapiolani Boulevard. The sales office is at 1288 Kapiolani Blvd.

The development will feature two glass-sided, oval-shaped residential towers and a five-story parking structure. Each tower will have 353 units and rise about 400 feet. Prices will start at around $300,000.

More information can be found on the development's Web site at www.moanapacific.com.

NATION
Ala Moana owner buys N.C. shopping center

General Growth Properties Inc., owner of Ala Moana Center and Victoria Ward Centers in Honolulu, paid $249 million for a shopping center in Greensboro, N.C., and the 50 percent of a Texas mall that it didn't already own.

General Growth yesterday completed the purchase of the 1.2 million-square-foot Four Seasons Town Centre in Greensboro from closely held Koury Corp., according to a statement distributed by Business Wire. The 50 percent stake in Town East Mall in Mesquite, Texas, was owned by Grosvenor Americas Sponsored Partnership. That purchase was completed earlier this week, Chicago-based General Growth said.