Hawaiian BK news

[G4G5]

NEW YORK (Dow Jones)--Two people connected to Hawaiian Investment Partners Group LLC, one of the two competing bankruptcy reorganization plans for Hawaiian Holdings Inc.'s (HA) Hawaiian Airlines (HA), were indicted on conspiracy charges.

In a press release Tuesday, the U.S. Attorney's office for the Southern District of New York said the charges against Paul Boghosian and William Spencer involve an allegedly fraudulent scheme involving bankruptcy proceedings at the airline.

Boghosian, who was arrested in March, was also indicted on two charges of commercial bribery after allegedly agreeing to pay a $500,000 bribe to an FBI agent posing as a hedge fund manager, in exchange for a $2.5 million loan.

Boghosian, 50 years old, is the head of Hawaiian Investment Partners, while Spencer, 74 year old, is a trustee for the E&M Trust, which submitted an affidavit in support of the Hawaiian Investment Partners' plan.

According to the press release, Boghosian and Spencer "made a number of misrepresentations to the Bankruptcy Court, among others, regarding HIP's ability in fact to provide approximately $300 million in new equity funding and financing in order to carry out HIP's reorganization plan."

The total indictment was filed in three counts, with each count carrying a maximum punishment of five years in prison.

A representative for Hawaiian Airlines, which filed for Chapter 11 bankruptcy protection in March 2003, wasn't immediately available for comment.

Attempts to find contacts for Boghosian and Spencer were unsuccessful.

 

[Whale Rider]

Man, this is BS! Hawaiian already has enough on its plate without these guys making headlines like this. Hang in there HA pilots, hang in there.

 

[Dan Roman]

Thanks Whale Rider but it really doesn't really have much to do with it. That plan never did have any credibility. Some people did get suckered in by it, but it was never really a viable option or ever considered a viable plan.

 

[HAL]

Hey DanRoman,

As a furloughee I was pleased to see the HAL pilot group stick together and vote down the TA, but what now? If the judge approves the company's 1113 plan all of us on the street will get royally hosed in the retirement plan. Any word on how it might play out or how long it will take? Thanks.

HAL

 

[Whale Rider]

Thanks Whale Rider but it really doesn't really have much to do with it. That plan never did have any credibility. Some people did get suckered in by it, but it was never really a viable option or ever considered a viable plan.

I know what the deal is Dan......just trying to support you guys.

 

[PHXFLYR]

HAL,

Playing both ends towards the middle.are we?


PHXFLYR

 

[HAL]

PHXFLYR,

Just keeping my options open. In today's pilot job market burning any bridge is stupid. I've felt the effects of furlough once already and realize that it could happen again - although I hope not. I want to make an informed decision when I have to.

HAL

 

[Dan Roman]

Sorry Hal, scheduling had the audacity to call me while I was on reserve.

Hard to read how this will go. Personally, I thought the reps had done a good job of spreading out the wealth on the TA, the 1113 motion is better for the senior guys but hoses the furloughed guys. This has been a real tough one, one way or another, Hawaiian is going from a DB plan to a DC plan. Ranch Capital is making good on the underfunded part to date, but the future is DC. The advantage to the DC is it's your cash and under the TA, you would have gotten 15% and it's yours no matter what happens to Hawaiian. As good as things look now for the airline, it can all change, so there is no sure thing.
The vote took this out of our unions hands and put it in the courts, so we'll see.
You'll know better what's going on by the time the recall letters go out.
You can't go wrong with more options.