Creditors say pilot
is obstructing Hawaiian
Air’s reorganization

The unsecured creditors' committee of Hawaiian Airlines, awaiting two labor votes that could lift the company out of bankruptcy by April 1, said yesterday that its efforts are being derailed by one of the carrier's pilots.

The committee filed a court motion saying that Hawaiian pilot Robert Konop "has created artificial barriers" to the airline's exit from bankruptcy. The group also says Konop's objections to the committee's reorganization plan for Hawaiian contains misstatements and meritless arguments. A hearing on that plan is set for next Thursday and Friday.

"They give me a lot of credit, that's for sure," Konop said. "All I've ever tried to do is make sure everybody gets what they're supposed to get and that someone doesn't profit unreasonably at others' expense.

"The biggest concern is to make sure that the airline stays safe and profitable without major drains on its resources."

Konop is part of a group that wants to offer a competing reorganization plan for the airline. But Bankruptcy Judge Robert Faris has delayed hearings on the alternative plan until a confirmation hearing can be held on the proposal backed by the creditors' committee.

The creditors' committee is afraid that Konop's actions in Hawaiian's bankruptcy might dissuade pilots and flight attendants from voting for new labor contracts, which are necessary to bring the carrier out of Chapter 11.

The pilots are not expected to vote on a contract until at least the middle of next week. The flight attendants began voting yesterday after rejecting an earlier agreement.

Still, it's possible that the committee's plan, which has the support of Hawaiian's trustee, Joshua Gotbaum, could be approved on condition that the pilots' and flight attendants' contracts are ratified later.

Meanwhile, the creditors' committee says Hawaiian's lawyers and financial experts have spent hundreds of hours responding to Konop's myriad objections.

"Throughout these bankruptcy proceedings, Konop has sought to derail (Hawaiian's) bankruptcy case as he has objected to nearly every substantive motion filed by the trustee (and filed a few motions of his own) and in nearly every case his objections have been overruled and motions denied by the court," the creditors' motion said.

Konop said in a declaration filed this week that the new debt Hawaiian will take on after emerging from bankruptcy will be "unserviceable" and the airline won't have enough cash.

The creditors' committee, however, said Hawaiian will keep a minimum cash balance of $70 million after making all payments.

Konop said his plan is superior because it will put $300 million into the airline, pay creditors 100 percent and not result in labor contract rejections.

The creditors' committee counters that Konop's group has not provided any evidence it has the money for its plan.

Konop, meanwhile, has filed personal claims of more than $40 million against Hawaiian. But the court has reduced his claims to $36,000.