Hawaiian Telcom took the first step yesterday to become a publicly traded company as part of its Chapter 11 bankruptcy reorganization plan.

The utility filed a Form 10 with the U.S. Securities and Exchange Commission to get on the Nasdaq Stock Market. The company's reorganization plan calls for it to become publicly traded upon emergence from Chapter 11 bankruptcy.

“;Becoming a publicly traded company marks a significant milestone in our efforts to evolve as a stronger, more competitive company, expanding and diversifying our communications products, services and solutions for the benefit of our customers,”; said Eric Yeaman, president and chief executive officer.

Hawaiian Telcom's reorganization plan calls for authorization of up to 20 million shares of new common stock, 10 million of which will be issued to holders of senior secured claims, and some holders of unsecured claims, according to the company's SEC filing.

  By going public, it gives the lenders more options, said Walter Dods, the company's current board chairman. A public offering puts value on company stock.

“;This gives them the ability to have a market to trade their ownership if they want to become more liquid,”; Dods said. “;They could trade, or they could wait until the company expands.”;

The company also announced a new board of directors who will take up seats once the company leaves bankruptcy. They are:

» Warren H. Haruki, interim CEO of Maui Land & Pineapple Co.;

» Richard Jalkut, president and CEO of U.S. TelePacific Corp.;

» Steven Oldham, president and CEO of SureWest Communications;

» Bob Phillips III, president and CEO of National Rural Telecommunications Cooperative;

» Paul Sunu, chief financial officer of Hargray Communications Group.

Yeaman will continue to serve on the new board of directors. The incoming directors all have experience in telecommunications.

Dods, chairman of Alexander & Baldwin Inc. and former chairman and CEO of First Hawaiian Bank, will no longer serve on the board after the utility emerges from bankruptcy. He has been on the board since May 2005, and took the chairmanship three years later.

Dods took his banking background and volunteered to assume a more active role in Hawaiian Telcom's restructuring. He calls his departure from the board a “;logical path”; as the company exits bankruptcy.

“;You need different kinds of talents for different parts of the company,”; Dods said. “;You've got the clean-up crew, then you've got the growing crew.”;

He called the financial restructuring process a success. The only remaining step for the case is approval from the state Public Utilities Commission on the company's reorganization, which was approved by the U.S. Bankruptcy Court in November. Approval is expected later this year.

“;To complete (bankruptcy) in one year is very good,”; Dods said. “;They've eliminated $900 million in debt. It makes the company very strong, and the community needs the infrastructure the full company provides.”;

At the time of the company's Chapter 11 filing, it had more than $1.1 billion in debt, including about $575 million in senior secured debt, and $500 million in senior notes and subordinated notes.