Sunday, May 31, 2009

Hawaii Superferry Files for Bankruptcy Protection

E-mailed this to friends shortly after it came out today. A little slow in getting this up here. There are a number of interesting deductions one can come to based on this. Will just wait to see it play out:


"Hawaii Superferry Files for Bankruptcy Protection"
By Bob Van Voris

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).

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