Act 2 Quarterly Report
From MarineLog at: http://www.marinelog.com/DOCS/NEWSMMIX/2009may00310.html
You can see the Hawaii Superferry petition HERE
You can see the HSF Holding petition HERE
May 31, 2009
"Hawaii Superferry files for Chapter 11"
Hawaii Superferry and its parent company, HSF Holding Inc., filed for Chapter 11 bankruptcy protection in U.S. Bankruptcy Court in Delaware on May 30...
One potential charterer for the Alakai and Huakai would appear to be the Pentagon. The two Joint High Speed Vessels (JHSV) in the defense budget now before Congress are of basically the same design. And in testimony to the House Armed Services Committee on May 13 Defense Secretary Robert Gates said:"to improve our intra-theater lift capacity, we will increase the charter of Joint High Speed Vessels (JHSV) from two to four until our own production program begins deliveries in 2011."
Meanwhile, Superferry has just $1 million in cash and is facing a $2.9 million principal and interest payment on one of the ferry construction loans.
The U.S. Maritime Administration guaranteed construction loans for the two catamarans on which $135.7 million of principal is outstanding while $22.9 million is outstanding on loans from Austal USA.
The Maritime Administration and Austal USA have first and second mortgages on the Superferry vessels, while the State of Hawaii has a third mortgage...
You can see the Hawaii Superferry petition HERE
You can see the HSF Holding petition HERE
May 30 (Bloomberg) -- Hawaii Superferry Inc., which provided high-speed ferry service for cars and passengers between Hawaii’s Oahu and Maui islands, filed for bankruptcy protection today.
Hawaii Superferry and parent HSF Holding Inc. filed Chapter 11 bankruptcy petitions in Wilmington, Delaware. They cited a Hawaii Supreme Court ruling in March that struck down a state law permitting the company to operate before completing an environmental impact statement...
The company, which reported more than $100 million in assets and debts in its bankruptcy petition, said it will use the bankruptcy to close its business completely and liquidate the operation...
Decline in Tourism
The law struck down by the Hawaii Supreme Court was enacted in November 2007 to permit the ferry to keep operating despite a series of successful state court legal challenges, Hawaii Superferry said in a court filing. The high court ruled that the law was intended specifically to benefit the company, in violation of the state constitution.
In addition to the court decision, Hawaii Superferry said its business was hurt by a decline in tourism, a 2008 increase in fuel prices and a price war between airlines that provided inter-island service in Hawaii.
The case is: In re HSF Holding Inc., No. 09-11901, U.S. Bankruptcy Court, District of Delaware (Wilmington).
WAILUKU - Crystal methamphetamine and other narcotics are showing signs of a resurgence on Maui, due to the dismal economy, according to a Maui Police Department vice officer.
As people find themselves unemployed and desperate, they increasingly turn to the drug trade to try to make money, said police officer Ken Doyle. Others start using drugs like meth to stay awake while they work multiple jobs to support their children. And addicts of all ages often say they started using drugs to cope with a dysfunctional or broken family life, he said...
"If the economy doesn't get better, (the drug problem) is going to get worse," Doyle said.
The Maui police had "intel" that drug traffickers were using the Hawaii Superferry to transport meth from Honolulu to Maui, before the ferry service shut down, he added. That presented an especially difficult channel to block, because Maui police didn't have jurisdiction over activities on the high seas, he said.
Meth is rarely manufactured in Hawaii but is usually smuggled into the islands from "superlabs" on the Mainland and in Mexico, said federal Drug Enforcement Agency investigator Linda Martin...
A big part of the credit goes to a law passed several years ago requiring drugs that contain pseudoephedrine, like Sudafed, to be taken off store shelves and distributed by pharmacists, with buyers required to show identification. The chemical is a critical ingredient in meth, and drug labs had been sending runners to buy up whole shelfloads of the congestion medicine before its sale was restricted, she said...
Many in the community still have hope that the Hawaii Superferry will be back after legal and environmental issues are resolved.
But chances of that happening seem dim with the Superferry auctioning off its physical belongings and canceling its leases on O'ahu and Maui while its two ships are being refitted in Alabama for other duty.
It's too bad; without getting into the complex question of who was to blame for its messy departure, the Superferry offered valuable travel and shipping options to local residents and businesses and deserved a fair chance to prove whether it was economically viable.
UH law professor emeritus Dick Miller and Betty Sugarman make an interesting argument that in an island state like ours, a ferry is effectively part of the highway system and the state has a responsibility to promote ferry service between the islands whether the Superferry returns or not.
"Providing an inexpensive, reliable, and reasonably frequent way for members of the public to travel between our islands is almost as much a need and as much a compelling governmental obligation as providing safe, uncongested highways, and as providing rail service for residents of O’ahu," they argue.
"Of all the states, only Hawai’i’s landmass is divided so significantly among several islands. The ability that most citizens of other states have to visit other areas within their state by just hopping into their vehicles is just not available to us. Nor can our businesses inexpensively transport their products to islands other than the one on which they are located.
"To serve these needs the closest equivalent to a highway system would be inexpensive, reliable, and regular ferry service. It is the state’s job to fulfill this responsibility, just as all states assume responsibility for highways."
We're in the throes of battle fatigue from the Superferry conflict and nobody is likely to take up the cause anytime soon, but for the long term, Miller and Sugarman make good sense...
Responses to “Interisland ferry issues bigger than Superferry”
KAHULUI, Maui — Souvenir hounds and bargain hunters will get a chance to bid on remnants of Hawaii Superferry's short-lived and contentious operations at auctions to be held on Maui and Oahu.
Everything from restroom trailers, portable offices, traffic cones, light towers, office furniture, Superferry shirts and shoe scrubbers will go on the auction block at 10 a.m. tomorrow at the former ferry terminal at Kahului Harbor, located at Puunene and Kaahumanu avenues.
The Oahu auction will take place at 10 a.m., May 23, at Honolulu Harbor Piers 19 and 20. Items include tools, a 10,000-pound power winch, animal carriers, luggage scales and carts, security camera systems, ticket counters, food service items, computers and life preservers...
05/13/2009 | S.Ct. | 29035 [pdf] | The Sierra Club v. The Department of Transportation of the State of |
05/13/2009 | S.Ct. | 29035 [pdf] | The Sierra Club v. The Department of Transportation of the State of |
05/13/2009 | S.Ct. | 29035 [pdf] | The Sierra Club v. The Department of Transportation of the State of |
Hmmm. The Hawaii Supreme Court has not (so far as I know) responded to the Lingle administration’s motion to reconsider the Superferry ruling. More than ten days have elapsed since her motion and the Senate’s amicus brief were submitted nearly a month ago.
According to the procedure Charley Foster helpfully wrote about earlier, the decision invalidating Act 2 still holds...
Filed under: Hawaii Media, Hawaii State Politics — Doug - May 10, 2009
Comments:
DOUG: Mahalo, Mr. Bennett. When did this happen (and how did I miss it)?
Comment by Mark Bennett — May 11, 2009 @ 2:01 pm
Comment by Robert Thomas — May 11, 2009 @ 5:51 pm
"The court has 10 days to either grant or deny the motion, and failure on the court’s part to respond one way or the other is deemed a denial of the motion."
They shouldn't even respond to this last ditch desperate political maneuver. Will find it amusing when day 10 passes and there has been no response.
OMG, I don't even remember posting the prior comment. Even with the extention to 5/15/09, it is starting to look like the denial by no action might just happen as Doug @ Poinography wrote about on May 10th and apparently Mark Bennett commented on May 11th. So we got 3 days left for the no action denial. Grounds for another party?
Austal USA is laying off employees this week, most of them welders, as the Mobile shipyard deals with a lull in its order book, Don Keeler, vice president of human relations, said today. Keeler declined to give the number of affected employees and would not say whether a public report of 100 job cuts was accurate.
The news comes on the heels of last week's announcement that Austal will build a second littoral combat ship for the U.S. Navy as part of a contracting team led by General Dynamics.
Full-scale LCS production will not start until the fall, according to Austal officials.
Austal is also scheduled to start production in November on the first ship in a potential $1.6 billion, 10-vessel contract to build high-speed transports for the military...
Navy awards contract for Littoral Combat Ship WTVM - Columbus,GA,USA The contract calls the Coronado to be built at the Austal USA shipyard in Mobile, Ala., with General Dynamics' Bath Iron Works overseeing the contract. ... |
General Dynamics Awarded Contract for Additional Trimaran Littoral ... MarketWatch (press release) - USA Partners include Austal USA (Mobile, Ala.); BAE Systems (Rockville, Md.); General Dynamics Advanced Information Systems (Fairfax, Va. ... |
May 18th, 2009 at 7:22 am
I question whether an 'inexpensive, reliable, regular ferry service' between islands is technically and economically possible.
May 18th, 2009 at 9:03 am
don't agree with profs - the state is not obligated to provide nonhighway interisland travel, but they may. If the state gets involved in such services, then it will open a pandoras box. Will the state need to provide support to the airliness also for interisland service? And if the state is involved, the taxpayers will pay, which will mean more taxes to the people. Nothing is free. These services are to be provided by private enterprises - such an airlines, etc. and the cost is borne by the users and not the whole populace.
However, the feds do provide resources to airlines and shipping companies for interstate travel.
May 18th, 2009 at 9:32 am
David,
Regarding the points by UH law professor emeritus Dick Miller and Betty Sugarman, now is a good time to bring this up. The DOT is internally developing the scope of the EIS right now. My hunch is that it is very narrow right now in an effort to finish the EIS quickly, for what? In the meantime soon HSF is likely to be committed to as much as 2 year leases on those vessels. So what's the rush with a narrow EIS?
In Alaska, Washington state, and Texas among others the state owns the ferry system. Therefore it allows the ferries not to have to be profitable as with a concession, they just have to cover their operating costs. State owned, better decisions can be made towards a sustainable and viable ferry system. In reading your quotes from Miller and Sugerman, that is the implication I see.
The type of vessel and even the type of entity of ownership should be a part of a new Scope for the EIS on this.
May 18th, 2009 at 12:57 pm
Last time I checked, the highways in Alaska were inadequate and few and far between. Which is why The Alaska State Ferry System is part of the State Highway System. It is known as "The Alaska Marine Highway System."