Judge puts off decision in Hilo Hattie case - bizjournals:

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The plan would also cancel the concessiohn agreement that Maui Divers Jewelry has with Hilo Hattie at itsseven stores. The amende plan was submitted on Friday, a week after Donalx B.S. Kang, president of garmenty manufacturer RoyalHawaiian Creations, acquired 100 percenty of Hilo Hattie stock on June 19 for undisclosed Even though the stock has changed the fate of the company and its debts and assets remains tied up in bankruptcy Kang has said he has $1 million in cash that woulds be used to immediately fund a line of credit for the company. His attorney, James Wagner, told U.S.
Bankruptc y Judge Robert Faris at a hearing Monday that Kang hasanothe $2 million in credit line up with First Hawaiian Bank that would be used afterr the company emerges from bankruptcy reorganization. That could be as earlu as September, Wagner told PBN. Wagner also told the judge, who liftecd a suspension on Hilo Hattie’s ability to that Kang would inject $500,00 0 cash into the business, and another $500,000 in inventory until the Chapter 11 planis confirmed. Faris on Mondat delayed a decision until July 15 on the effort by Maui Diversx Jewelry to buyHilo Hattie.
Maui Divers offeredx to pay $1 million for the companyg at closing and then to immediatelhinject $2 million in capitall into the operations. Maui Divers’ plan had the supporyt of the committee ofunsecured creditors, and an attornehy for General Growth Properties, which is the landlord for two of its said the company had worked out a deal for the lease s at Ala Moana Center and Princw Kuhio Plaza in Hilo. Maui Divers had not reached agreement with the landlordss of its fiveother stores, saying the landlordsz would not agree to a deal untipl they knew whether Maui Diverxs would become Hilo Hattie’sd new owner.
Wagner, however, told the judge that Kang had agreementss withthose landlords, but not with General The mall owner, which is also in Chapte 11 reorganization, was concerned that post-bankruptcyu Hilo Hattie stores would not contain Maui Divers concessions, whicb generate some 50 percent of the store’s revenues, accordinf to General Growth’s attorney Ivan Gold. When Faris questionex Wagner about what would happen if Hilo Hattie was unable to renegotiate a concessionm agreement withMaui Divers, Wagner said therd were other concessions, other jewelry companies that could presumably take its “The debtor is not avers to having Maui Divers concessions,” Wagnedr told the court.
“We can’tr force Maui Divers to come to thebargaininyg table.” Maui Divers President and CEO Bob Taylort declined to comment after the hearinh about the offer or the proposecd cancellation of the concessions at the Hilo Hatti e stores. The attorney for the committee ofunsecure creditors, Ted Pettit, noted that Maui Diveres had placed a $50,009 deposit on the “As of today, Maui Divers has not askeds for a refund of their deposit, whichb I take as an indication that they are proceedingb with their offer,” he told PBN.
Pettit had arguede that Kang’s acquisition of the Hilo Hattie stocjk was subject to court approval as part of thebankruptcyh case, but Faris said that it was not. Faris also delayes ruling on the committee’s motionn to appoint a Chapter11 trustee, as well as a motiohn by the U.S. Trustee to convert the case to Chapte r 7 liquidation or dismissit altogether. Kang took over as presiden and CEO of the company last week aftee CEO Ted Nelson and President JohnScott resigned. Craibg Bingham remained CFO while adding the titles treasurere and executivevice president, while Mark who was treasurer, is now chief operating officet and executive vice president.
David who is Kang’s attorney, is now executive vice president and secretary of the andTerri Funakoshi, Hilo Hattie’s general merchandise was promoted to executive vice president of