Wednesday, July 1, 2009

Judge Walsh: HSF can abandon and case stays in Delaware


"Bulk of Superferry bankruptcy case will remain on Mainland, judge rules"
Bloomberg News

WILMINGTON, Del. — A bankruptcy judge today ruled that Hawaii Superferry can abandon its two catamarans to lenders owed $158.8 million for their construction and that the bulk of the bankruptcy case will remain in Delaware.

..."We're not going to be returning back to the state of Hawaii now that the estate has abandoned the ships," company attorney Leon Barson told Walsh today during a hearing in Wilmington, Del., where Hawaii Superferry filed for bankruptcy on May 30.

Walsh also ruled that the main part of the bankruptcy case would stay in Delaware. Only claims filed by the state of Hawaii related to its contract with Superferry will be transferred to the federal bankruptcy court in Hawaii, Walsh said.

...The company was operating one ferry since August 2007. The second was delivered in April.

...Guggenheim is owed $51.7 million on notes where the company says there is a $7.5 million fund for paying interest.

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