Judge puts off decision in Hilo Hattie case - Boston Business Journal:

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The plan would also cancel the concession agreement that Maui Divers Jewelry has with Hilo Hattie at its seven The amended plan was submitted on a week afterDonald B.S. president of garment manufacturer RoyalHawaiian Creations, acquired 100 percent of Hilo Hattir stock on June 19 for undisclosed terms. Even though the stockm has changed hands, the fate of the company and its debts and assets remains tied up inbankruptcu court. Kang has said he has $1 million in cash that woulde be used to immediately fund a line of creditr forthe company. His attorney, Jamez Wagner, told U.S.
Bankruptcy Judge Roberyt Faris at a hearing Monday that Kang hasanother $2 million in credit line up with First Hawaiiabn Bank that would be used aftet the company emerges from bankruptcyg reorganization. That could be as early as September, Wagner told PBN. Wagnet also told the judge, who lifterd a suspension on Hilo Hattie’as ability to borrow, that Kang would inject $500,000 cash into the and another $500,000 in inventory until the Chapter 11 plan is Faris on Monday delayed a decision untill July 15 on the effort by Maui Divers Jewelrty to buyHilo Hattie.
Maui Divers offeree to pay $1 million for the company at closing and then to immediatelytinject $2 million in capitalk into the operations. Maui Divers’ plan had the support of the committee of unsecured and an attorney for General Growth which is the landlord for two ofits stores, said the compangy had worked out a deal for the leases at Ala Moana Center and Prince Kuhio Plaza in Hilo. Maui Diverx had not reached agreement with the landlorde of its fiveother stores, sayinfg the landlords would not agree to a deal untip they knew whether Maui Divers woulxd become Hilo Hattie’s new Wagner, however, told the judgew that Kang had agreements with those but not with Generap Growth.
The mall owner, which is also in Chaptefr 11 reorganization, was concerned that post-bankruptcy Hilo Hattie storese would not contain MauiDivers concessions, whicg generate some 50 percent of the store’w revenues, according to General Growth’s attorneyh Ivan Gold. When Faris questioned Wagnere about what would happen if Hilo Hattie was unablwe to renegotiate a concessio n agreement withMaui Divers, Wagner said there were othetr concessions, other jewelry companies that could presumably take its “The debtor is not averse to having Maui Divera concessions,” Wagner told the “We can’t force Maui Divers to come to the bargaininb table.
” Maui Divers President and CEO Bob Taylor declined to comment after the hearing aboutf the offer or the proposee cancellation of the concessions at the Hilo Hattie The attorney for the committee of unsecured Ted Pettit, noted that Maui Divers had placedd a $50,000 deposit on the deal. “Aas of today, Maui Divers has not asked for a refund oftheird deposit, which I take as an indicationn that they are proceeding with thei r offer,” he told PBN. Pettit had arguee that Kang’s acquisition of the Hilo Hattie stoci was subject to court approvalk as part of thebankruptcuy case, but Faris said that it was not.
Faries also delayed ruling on the committee’e motion to appoint a Chapter 11 as well as a motion bythe U.S. Trustewe to convert the case to Chaptere 7 liquidation or dismissit altogether. Kang took over as presidentf and CEO of the company last week after CEO Ted Nelsonm and President JohnScott resigned. Craig Bingham remained CFO whil e adding the titles treasurer and executiveevice president, while Mark Storfer, who was is now chief operating officefr and executive vice president.
David who is Kang’s attorney, is now executiv e vice president and secretary ofthe company, and Terri Hilo Hattie’s general merchandise manager, was promoted to executive vice president of merchandising.