Bankruptcy Filed by Hawaiian Telcom:Layoffs Possible
Here is some potentially bad employment news coming out of Hawaii: According to news reports, Hawaiian Telcom Communications filed for Chapter 11 bankruptcy protection on Monday. Hawaiian Telcom Communications of Hawaii is backed by the investment company, Carlyle Group who bought the telecommunications company form Verizon in 2005. This is abad time for such news in Hawaii, with so many other businesses likewise struggling. For example I have noticed the local Nissan dealer seems to have less foot traffic whenever I drive by.
Despite news of Hawaiian Telcom filing for chapter 11 bankruptcy, Carlyle Partners III $4 billion buyout fund is up 230 percent. Carlyle had originally purchased Hawaiian Telcom to expand the network and offer new products and service bundle packages. However, approval delays by regulators caused the company to lose land-line phone customers faster than they anticipated. Time Warner Cable was also proved to be fierce competition for them. Reinvestments by Carlyle of up to $100 million and efforts by them to bring in experts to turnaround management issues also failed. By the way if you live in hawaii and are looking for a Nissan dealer then may I suggest my local Hawaii Nissan dealership. Now is a great time to buy a Nissan vehicle because they have some excellent deals and you will be helping the economy as well.
The Hawaiian Telcom Communications company and seven affiliates filed for chapter 11 bankruptcy in the United States Bankruptcy Court in Wilmington, Delaware. According to news reports, they listed $1.4 billion in assets along with $1.3 billion in debt.
According to a letter by President and Chief Executive Eric Yeaman sent to customers on Monday, it was stressed that the company was not going out of business and that service would not be interrupted.