Hawaiian Trustee requests 8 MILLION for so called success fee!!!!

Erndogg

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Former Hawaiian Air trustee seeks $8 million success fee

[font=Trebuchet MS, Verdana]By Rick Daysog
Advertiser Staff Writer
[/font]

[font=Times New Roman, Times, serif]Former Hawaiian Airlines' Trustee Joshua Gotbaum is seeking $8 million for his efforts in leading the state's largest airline out of bankruptcy, drawing heavy criticism from the airline and its labor unions.

In court papers filed last night, Gotbaum said that he's entitled to the fee given Hawaiian's successful emergence from bankruptcy in June in which creditors were paid in full and where shareholders saw their stock values rise.

The so-called success fee is on top of $1.4 million in salary and expenses that he's already received from Hawaiian.

Gotbaum's fee represents about 11 percent of Hawaiian's 2004 operating income and is more than double the amount paid to the highest compensated local chief executive officer last year.

"Hawaiian's bankruptcy has turned out amazingly well for its creditors, its shareholders and its extraordinary employees," Gotbaum said in a news release. "Now the judge must decide what's right for Hawaiian's trustee."

But the chairman of Hawaiian's parent company, Larry Hershfield, called the fee request "outrageous," adding the the airline would oppose it.

"Given current industry conditions and a realistic analysis of who-did-what during the bankruptcy, we think the the requests are outrageous," he said.

U.S. Bankruptcy Judge Robert Faris has scheduled a Sept. 21 hearing on fees requested by Gotbaum and the airline's outside consultants.

Hawaiian Airlines spokesman Keoni Wagner had no immediate comment and Chuck Choi, attorney for Hawaiian's unsecured creditors, also had no immediate response.

Kirk McBride, chairman of the 380-member Hawaiian unit of the Airline Pilots Association, called Gotbaum's fee request "an outrage," saying the former trustee was well-compensated during the period he worked at Hawaiian.

Gotbaum's bankruptcy court-approved compensation included $50,000 a month in salary plus $10,000 a month in living and other expenses.

McBride noted that the $8 million success fee is equivalent to about 20 percent of the annual payroll of Hawaiian's pilots.

"This is a slap in the face of the pilots of Hawaiian who made significant structural changes in their contract to ensure the success of the company," McBride said."I don't believe Gotbaum's tenure this warrants this sort of success fee." Gotbaum's attorney, Sidney Levinson of Los Angeles, argued that the success fee was reasonable given the difficulties faced by the airline, which include a lawsuit against the airline's former Chairman John Adams, a tax dispute with the Internal Revenue Service and negotiations over aircraft leases. All three disputes were successfully resolved during the bankruptcy, Levinson said.

I would have posted this on the Hawaiian recall thread, but I was outraged by the greed that this Joshua Gotbaum displays with his request!!!!

This is the same guy that misappropriated numerous $$$ from the 9-11 fund (ex-CEO) and came out nowhere after the original trustee resigned for medical reasons. Hawaiian had already been set to exit not long after this character came along.

But he draged out the process a year and a half more by forcing concessions out of the employees. Hopefully the BK judge sees through his BS and gives him no where the figure he is requesting.

We need to rid these vultures from our industry!!!


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FlickerFade

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Amen E!

Gutgreed was a pox on our house!

He is worse than Adams. After pleading how dire the financial future of HAL was, he has the unmitigated gall to ask for a total of $10M in compensation.

I am so happy to see Hershfield open up on this guy. The Sep.21 court hearing should be quite a show. I think that HAL employees should pack the courtroom and show the judge whose pockets this guys "sucksass" fee would be coming from.
 
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dash8driver

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incredible.. hopefully this is one time faris will keep with his trend of siding with the company.

thats your money.. you earned it, not him. if they have that kind of money laying around, it should be given back to the employees. makes me sick.
 

Whale Rider

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Joshua Gotnone doesn't deserve $8 as far as I'm concerned! He didn't do it all by himself. The employees of HAL struggled and sacrificed alot more than $8 million over the years and none of them will ever see that money!

What success is he talking about??? HAL was bound to come out of BK with or without him. There are still 98 guys on the street. If he deserves some kind of a bonus then why was HAL paying him a salary for??? If anyone should get $8 million it should be divided amongst the employees of HAL. :mad:
 
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Immelman

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Does anyone find it fishy that Hawaiian is now delaying the filing of their quarterly report today (new press release this morning)....I am well versed in hawaiian time, but I would think their accountants would be on time... wonder if there exists a connection between this and the $8M demand.
 

Erndogg

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Does anyone find it fishy that Hawaiian is now delaying the filing of their quarterly report today (new press release this morning)....I am well versed in hawaiian time, but I would think their accountants would be on time... wonder if there exists a connection between this and the $8M demand.

I dont know,but I think there's some serious COOKING going on at Koapaka Street!!!!!!!




I dont know??? BuIf anyone should get $8 million it should be divided amongst the employees of HAL. :mad:t

AMEN BRAHDDA!!!!



He is worse than Adams. After pleading how dire the financial future of HAL was, he has the unmitigated gall to ask for a total of $10M in compensation
.

And even worse, he told us in a meeting that our stock in HA would be worthless!!!! So alot of employees ended up selling only to have the stock saved and make $$$$.
Now he is claiming in his court docs that he helped increase the stock price in addition to taking credit for everything else Hawaiian has benefitted from!!! If anyone deserves credit it is Mark Dunkerley!!!! Who had to operate under Adams,Monohan,Gotbamb and now Hershfield!!!!
 
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AAflyer

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Don't worry guys and gals, Don Carty will protect you! :eek:

AA
 

av8tortype

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Whale Rider said:
Joshua Gotnone doesn't deserve $8 as far as I'm concerned! He didn't do it all by himself. The employees of HAL struggled and sacrificed alot more than $8 million over the years and none of them will ever see that money!:mad:
Right on ... and what's disturbing me is that Banmiller is sitting back over at AQ waiting to play his cards too! The Jokers are wild ...
 

Erndogg

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Right on ... and what's disturbing me is that Banmiller is sitting back over at AQ waiting to play his cards too! The Jokers are wild ...
Let's hope he doesn't take his self interest over the welfare of the dedicated employees of Aloha!! OOOPPPSSS!!! sorry I think I fell on my head and just woke up!!!:rolleyes:
 

English

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Banmiller is one of the reasons I quit Aloha. The writing is on the wall with that guy. Just talk a look at the Sun Country playbook.


I just don't trust him.
 

Erndogg

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I dont know,but I think there's some serious COOKING going on at Koapaka Street!!!!!!!
Hawaiian Air parent
loses $4.5 million in quarter

By Dave Segal
dsegal@starbulletin.com


The parent company of Hawaiian Airlines posted a $4.5 million net loss in the second quarter, with its fuel costs spiking more than 52 percent.

[url="http://starbulletin.com/2005/08/16/business/hal.gif"]http://starbulletin.com/2005/08/16/business/hal.gif[/url] Hawaiian Holdings Inc., reporting its financial results combined with its airline subsidiary for the first time in more than two years, said revenue increased 5.7 percent to $202.1 million from $191.2 million a year earlier. At the same time, fuel costs jumped to $48.2 million from $31.7 million.

The combined company had an operating loss of $1.7 million in the quarter compared with an operating gain of $15.6 million a year earlier. Hawaiian Holdings had a net gain of $6.6 million in the second quarter of 2004.

Earlier this month, Hawaiian Airlines' former trustee, Joshua Gotbaum, asked federal Bankruptcy Court for an $8 million success fee for bringing the carrier out of Chapter 11. Gotbaum already has received $1.2 million in compensation. The company criticized the request as outrageous.

Hawaiian Holdings' financial results were decoupled from Hawaiian Airlines when the carrier filed for Chapter 11 reorganization in March 2003. The airline emerged from bankruptcy in June of this year, and the results of the two companies were reunited yesterday in a filing with the Securities and Exchange Commission.

Jet fuel costs represented 19.6 percent of Hawaiian's operating expenses in 2004, the filing said.

The company said average West Coast jet fuel prices increased to $2.08 a gallon as of Aug. 11 from $1.22 a gallon on Dec. 31.

Hawaiian Holdings said it recently reached an agreement to hedge its fuel prices. As of June 30, Hawaiian held jet fuel swap agreements that represent approximately 40 percent of the airline's fuel requirements forecast for the rest of this year and 42 percent of the company's fuel needs for 2006.

The fair value of Hawaiian's jet fuel swap agreements was $10.1 million, the filing said.

Hawaiian Holdings Chief Financial Officer Randall Jenson and Hawaiian Airlines spokesman Keoni Wagner both declined to comment yesterday on the company's earnings. The carrier was to put out a news release today.

The company also disclosed in its filing:

» Aircraft leases with Ansett Worldwide Aviation Services for seven Boeing 767s, which are used for Hawaiian's trans-Pacific routes, can be term-inated early by the aircraft lessor beginning in March 2007 after Ansett gives 180 days notice.

» Hawaiian is negotiating with new Chief Executive Mark Dunkerley for a three-year contract. Dunkerley was elevated to CEO after Gotbaum stepped down.

» The airline, which has been seeking to reduce its reliance on travel agencies, received 40 percent of its sales in 2004 through its Web site, compared with less than 5 percent in 2002. Revenue from e-ticket sales totaled $588 million in 2004, representing 84 percent of total passenger revenue.

Looks like they went out an hedged some gas so we dont have to pay Gotballs.
The magic of accounting!!!

Hawaiian Airlines
www.hawaiianair.com
 
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