Hawaiian Telcom Communications Inc. said that it has been granted interim authority from the Bankruptcy Court to utilize its $75 million cash collateral to continue to fund the business in the ordinary course, without interruption.
Earlier this week, Hawaiian Telcom, the largest telephone company on the Hawaiian Islands, and certain of its subsidiaries filed for Ch. 11 bankruptcy protection (story here ).
The company had been working with creditors on a debt-restructuring agreement and decided the bankruptcy-protection filing was the best course of action, since the company faces increased competition, economic volatility and a failure to meet capital expenditure needs.
The Bankruptcy Court will allow Hawaiian Telcom to pay suppliers for all post-petition goods and services in the normal course of business. The Bankruptcy Court also approved the company's motions to continue to pay and honor all employee wage and benefit programs, as well as customer programs.
“Customers, employees and suppliers can rest assured that we are dedicated to them and have the capital to stand by our commitments,” said Eric K. Yeaman, Hawaiian Telcom's president and CEO.
The hearing for final approval of the cash collateral motion will take place on Jan. 5.
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