The Bankruptcy Buzzards in Liberty House

The Bankruptcy Buzzards in

LIBERTY HOUSE

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From Wikipedia:

History

Tracing its antecedents to Hackfeld's Dry Goods formed by German trader Heinrich Hackfeld in 1849, in 1852 the retail location was renamed for Hackfeld's nephew, B.F. Ehlers. Hackfeld continued to maintain an interest in the store, while he concentrated on his trading, shipping and real-estate interests, eventually bringing in partner Paul Isenberg. In 1898 the Hackfeld and Isenberg family interests in Hawaii were officially reorganized as H. Hackfeld & Co.

In 1918 at the height of World War I, H. Hackfeld & Co. was seized by the American government as alien property (since many of the Hackfeld and Isenberg heirs still lived in Germany), and was sold to a newly formed consortium, American Factors.

At the same time the B.F. Ehlers store was renamed The Liberty House to in response to anti-German sentiment. With Hackfeld's huge sugar plantations and land interests, American Factors (later known as Amfac) became one of Hawaii's Big Five landowners.

In 1969 Liberty House expanded onto the mainland with Amfac's purchase of the Rhodes Western department stores, a long-time consolidator of department stores. The former Rhodes' stores were renamed Liberty House between 1971-1974. The mainland operation eventually included stores in Arizona, California, Nevada, Oregon, Texas and Washington. This expansion culminated with the construction of a new San Francisco, California flagship in 1974 at Stockton and O'Farrell Streets. Poor results and a scattered footprint caused the rethinking of future investment, and in 1978-1978 Liberty House began winding down the mainland stores, with the remaining ten being sold in 1984.

In 1988 Amfac was acquired in a leveraged-buyout by JMB Realty Corp., a Chicago, Illinois real estate investment company, under whose ownership Liberty House expanded to Guam in 1994.

In 1998 Liberty House filed Chapter 11 bankruptcy, under which it closed most of its resort store business, which had totaled over 40 stores at one point. In 2001, after emerging from bankruptcy, the company was acquired by Federated Department Stores and merged into Macy's West.

July 8, 2004

Hawaiian Air owes $129M, IRS claims

The airline's bill for more than two years of underpayments
includes $40.5 million in penalties

By Dave Segal, Star-Bulletin

The Internal Revenue Service is seeking nearly $129 million from Hawaiian Airlines for the underpayment of federal excise and corporate income taxes over more than two years.

The IRS claim, filed in federal Bankruptcy Court, seeks $84.1 million in taxes, $4.3 million in interest and $40.5 million in penalties. The airline industry excise taxes, which cover such areas as fuel and transportation, are for 2001 and 2002 and the first two quarters of 2003. The corporate income tax claims are for $43.1 million in 2001 and $19.7 million in 2002.

Most of the claim covers time before the airline's Chapter 11 reorganization filing on March 21, 2003, when John Adams was chairman and chief executive of the company. He was removed two months later by Bankruptcy Court Judge Robert Faris for financial decisions he made involving the airline's $25 million stock tender offer in 2002.

Hawaiian Airlines had been aware that the federal agency was conducting an audit for 2001 and 2002, but airline trustee Joshua Gotbaum, who took over the company in July 2003, called the magnitude of the claim "unjustified."

"We believe the estimate is substantially overstated and expect the claim will be greatly reduced by the bankruptcy court," Gotbaum said. "Hawaiian Airlines has been providing detailed information and cooperating fully with the IRS over the past year."

The state Department of Taxation also has filed a claim with Bankruptcy Court but lists the amount it is seeking as "unknown."

State Tax Director Kurt Kawafuchi said he does not know how much the state might seek from the airline in back taxes.

"We definitely will follow up on it and will do whatever we can to protect the state's interest," Kawafuchi said. "We need to look into what the IRS was making as claims to see if we have parallel state adjustments, and if we do, we'll do whatever steps we can to protect the state's rights."

Hawaiian Airlines, which expects to emerge from bankruptcy this fall, has received claims in excess of $500 million since filing for reorganization. Insiders connected with the case expect the number of legitimate claims to end up around $300 million.

The IRS claim is the largest so far in the case, just ahead of a $110 million claim by aircraft lessor Ansett Worldwide.

Insiders say the amount that Hawaiian ultimately pays likely will be considerably less than what the IRS is seeking.

For example, the IRS initially sought $138 million from bankrupt Hawaii retailer Liberty House but ended up settling $103 million of that claim for $4.2 million and capped the remainder at $14 million.

Carol Muranaka, special assistant U.S. attorney, said the two cases cannot be compared because they are different taxpayers. She declined to discuss any details about the Hawaiian Airlines case due to privacy issues.

"The government always tries to determine the correct amount of tax," Muranaka said. "We filed the proof of claim because we believe we have determined the correct amount of tax that is due."

http://starbulletin.com/2004/07/08/news/index1.html

May 30, 2003

Monahan will lead Hawaiian

The executive piloted Liberty House
through its bankruptcy reorganization

By Dave Segal, Star-Bulletin

Former Liberty House executive John Monahan, who piloted the Hawaii department store chain through a three-year reorganization, was chosen today to be the trustee of bankrupt Hawaiian Airlines.

The selection by U.S. Trustee Steven Katzman followed a two-week search that was triggered after federal Bankruptcy Court Judge Robert Faris found questionable business dealings in Hawaiian's financial operations.

Monahan, who was president and chief executive officer of Liberty House but doesn't have any airline experience, beat out a field of more than 20 candidates. They included Rono Dutta, former president of United Airlines parent UAL Corp.; Bill Compton, former CEO of Trans World Airlines; and Joshua Gotbaum, former executive associate director and controller of the U.S. Office of Management and Budget.

Former Hawaiian executives Michael McQuay and Paul Casey dropped out of consideration earlier in the search due to financial ties with the airline, while Jim McCrea, the former CEO of Air New Zealand, was ruled out because he wasn't a U.S. citizen.

The 52-year-old Monahan, who led the Hawaii retailer through the costliest bankruptcy in state history, couldn't be reached for immediate comment. A court filing naming him as trustee was expected this afternoon.

Monahan would have the option of bringing in an outside airline expert as CEO to complement whatever current management he decided to keep. As the trustee, Monahan would have complete control in running the airline and would have the power to retain or release any management.

The only certain casualty will be Chairman and CEO John Adams, who came under fire at a Bankruptcy Court hearing earlier this month. The hearing had been requested by aircraft lessor Boeing Capital Corp. Hawaiian filed for bankruptcy March 21.

Faris said he ordered a trustee be appointed because Hawaiian, and specifically Adams, consistently had placed the interests of the investors ahead of creditors and said a $25 million tender offer by Hawaiian was ill-timed in light of the airline's decreasingly worsening financial condition.

Despite his lack of airline expertise, individuals acquainted with Monahan said he more than makes up for it with his knowledge of bankruptcy reorganization.

Carlsmith Ball attorney Tom Roesser, who was the local counsel for the secured creditors in the Liberty House bankruptcy, said Monahan has proven his ability to function effectively under public scrutiny.

"I think John did an excellent job under very difficult circumstances," Roesser said. "In the Liberty House case, there was a dispute over which board of directors was in control, and John basically had to respond to both boards. That was difficult for someone in his position, but he did a great job."

Roesser said he didn't think Monahan's airline knowledge shortcoming would be a disadvantage because Monahan can rely on some of Hawaiian's current management or bring in outside help.

"He went through a successful Chapter 11 reorganization with Liberty House and I think that's what Hawaiian wants to accomplish," Roesser said.

Monahan, who came to Liberty House from Los Angeles-based May Co. in 1990, began his career with the Hawaii retailer as the vice president, director of stores. He was named senior vice president and chief operating officer in 1994 before being promoted to president and CEO in May 1997.

Liberty House's three-year bankruptcy ultimately ran up legal fees and other expenses totaling a record $16 million. Ironically, the previous record holder was Hawaiian, which spent $5.4 million before emerging from Chapter 11 in 1994.

In the process, though, Monahan worked himself and other local management out of a job but succeeded in keeping alive the stores and saving most employees' jobs.

Monahan started his own consulting company last year, JMN Associates, which specializes in restructuring, retail and real estate.

"You know, this is a real bittersweet time," Monahan said at a June 2001 press conference after it was announced that Liberty House had been sold to Macy's parent Federated Department Stores Inc.

"(It's) bitter because of reaching the end of my association with this great store and with the great people at Liberty House.

"However, today is sweet also because it puts an end to all the uncertainty and speculation about Liberty House."

Once again, Monahan finds himself surrounded by uncertainty and speculation. Hawaiian's 3,200 employees and one of the state's two major airlines could be counting on his ability.

Roesser, for one, isn't betting against him because Monahan has been through the bankruptcy process before.

"I think that would be a big advantage because bankruptcy is kind of a world of its own," Roesser said. "It has its own specific set of rules that govern it. So to have lived through a Chapter 11 reorganization previously means he has familiarity with the bankruptcy rules and what's necessary to get a plan confirmed."

Liberty House, which filed for Chapter 11 in March 1998, emerged from bankruptcy in March 2001, largely owned by two venture capital companies, Oaktree Capital Management of Los Angeles and DDJ Capital Management of Wellesley, Mass. The companies had bought up the bulk of Liberty House's devalued debt during the bankruptcy and sold the company in June 2001 to Federated.

The $200 million sale was completed in July 2001 and all the Liberty House stores were renamed Macy's in November of that year.

Dwight Yoshimura, general manager of Ala Moana Center, said Monahan had to walk a fine line in leading the company through reorganization. Liberty House was an anchor tenant at the center.

"He's a very capable individual," said Yoshimura. "He's got tremendous character. I think it was very difficult for him because he obviously had the community at heart and was just trying to balance what the owners of Liberty House were trying to do. A lot of time he was caught between a rock and a hard place and, in the end, he did the right thing to make sure the employees were taken care of as well as the community."

http://starbulletin.com/2003/05/30/business/story1.html

June 21, 2002

KS Names IT Director

By Kekoa Paulson, Kamehameha Schools Press Release

Kamehameha Schools today announced the selection of Joseph Ferreira, Jr. as Director of Information Technology, effective July 1, 2002.

Ferreira joins KS from Hawaiian Airlines where he was the Senior Director of Information Technology, responsible for directing and overseeing the company's nationwide information technology functions. From 1996 to 2000, Ferreira headed Hawaiian's Systems Development and Integration, where he rebuilt the company's IT infrastructure when outsourced functions were returned in-house.

Ferreira also held previous IT positions with the U.S. Joint Intelligence Center Pacific at Pearl Harbor, Hawaiian Electric Company and Amfac, Inc., where he helped develop their land records system and Liberty House's merchandise information system.

Ferreira holds a Bachelor's degree from the University of Hawaii, and is knowledgeable in a number of operating systems and applications....

As IT Director, Ferreira will report to Chief Operating Officer/Chief Financial Officer Eric Yeaman.

He replaces Dwight Kealoha, who will head the newly formed Kamehameha Schools Pauahi Leadership Institute.

www.ksbe.edu/index.php?topic=news&page=16

January 11, 2002

Anzai recuses self in airlines merger

The attorney general's wife is counsel for Hawaiian Airlines

By Lyn Danninger, Star-Bulletin

State attorney general Earl Anzai said yesterday he has completely recused himself from oversight of the proposed merger of Hawaii's airlines because his wife is legal counsel for Hawaiian Airlines and worked on the merger.

It was done at the very beginning. I'm not that stupid," he said. "I have not been in a single meeting or seen a single document."

As vice president, general counsel and corporate secretary for Hawaiian Airlines, Anzai's wife, Lyn, would have played a key role in the due diligence phase and other activities related the merger.

But she has not had any direct role in negotiations with the Attorney General's office, spokesman for Hawaiian Airlines Keoni Wagner said.

The state Attorney General's office will likely play a bigger role in any approval of the Hawaiian-Aloha merger than federal regulators.

Anzai said potential conflicts of interest are not unusual and he has always recused himself from past cases in order to avoid any appearance of a conflict.

Questions regarding potential conflicts of interest were first raised as far back as Anzai's legislative confirmation hearing to become attorney general. At one time, his wife had also worked as an in-house attorney for Kamehameha School which was then under investigation by the Attorney General's office.

May 9, 2000

Liberty House tax claim settled

By Susan Hooper, Honolulu Advertiser

Liberty House parent JMB Realty Corp. and the Internal Revenue Service have reached a partial settlement of a tax dispute that has stalled Liberty House’s bankruptcy reorganization for more than a year.

Bruce Bennett, lead reorganization lawyer for Liberty House, yesterday called the resolution of the claim, and its size, a "major milestone" in the bankruptcy case.

The $4.2 million settlement is 4 percent of the $103.5 million the IRS originally said Liberty House owed in taxes and interest for 1992-94 because it was in a consolidated tax group headed by Northbrook Corp., a company affiliated with Chicago-based JMB Realty Corp.

Bennett said his "rough estimate" is that Liberty House likely will pay less than $500,000 of the $4.2 million.

The IRS has begun an audit of its claim for another $34.8 million in taxes and interest it says Liberty House owes for 1995 and 1996 as a member of the consolidated group.

Carol Muranaka, a special assistant U.S. attorney, said in U.S. Bankruptcy Court in March that the audit could take two or three years to complete because of the complexity of the filing.

Daniel Murray, a lawyer for JMB, said the company is cooperating with the IRS on the audit "to bring that to the quickest conclusion possible."...

Liberty House filed for Chapter 11 bankruptcy protection in March 1998. The case has been complicated by the presence of two boards of directors asserting control over the company. One represents Liberty House’s major lenders; the other represents JMB.

The development of a reorganization plan for the retailer has been slowed in part by the size of the tax claim and uncertainty about its outcome.

Liberty House lawyers have said that because the IRS filed its claim in May 1999, the retailer is responsible for only a fraction of the total $138.2 million claim. But the IRS believed Liberty House could be held responsible for the entire claim because of its involvement in the consolidated group. Liberty House has not been a member of that group since February 1997.

Chuck Choi, a Honolulu lawyer representing the committee of unsecured creditors, said the settlement "brings us a big step closer to confirming a reorganization plan."

However, he said, "The committee does not believe that the reorganization of Liberty House should be delayed for another two years pending an audit of the balance of the tax claim."

Murray said his client is pleased with the settlement. He said Northbrook would pay the $4.2 million tax bill for that claim "forthwith" and then "settle up with Liberty House for the portion of the tax bill directly attributable to Liberty House’s operations."

CORRECTON: Since May 1999, when the IRS filed a tax claim against Liberty House, the retailer’s lawyers have argued that it was responsible for only a fraction of the total $138.2 million claim. Because of an editor’s error, this story misstated the lawyers’ argument.

http://the.honoluluadvertiser.com/2000/May/09/localnews14.html

February 26, 2000

Liberty House settles on raises

By Susan Hooperm Advertiser Staff Writer

Two opposing sides in the Liberty House bankruptcy have settled a dispute over raises for the retailer’s top executives that was to be heard Monday in U.S. Bankruptcy Court.

Neither side would disclose terms of the agreement, reached yesterday. Bruce Bennett, Liberty House’s lead bankruptcy lawyer, said he would provide details at the Monday hearing.

At issue were five-figure raises for about 10 top executives. The board of directors appointed by Liberty House’s major lenders had approved the raises; they took effect in the third quarter of last year.

JMB Realty Corp. of Chicago, Liberty House’s owner, argued that Bankruptcy Court approval was required for the raises. Liberty House lawyers disagreed, saying the raises were “in the ordinary course of business.”

U.S. Bankruptcy Judge Lloyd King was to hear arguments from both sides Monday.

Under the agreement reached yesterday, the lenders’ board will withdraw its request that the court hire the Honolulu office of consulting firm Watson Wyatt & Co. to conduct a $45,000 comparison of Liberty House’s pay structure with that of competitors.

JMB had objected to the survey, which would have reviewed the salaries of all 3,000 Liberty House employees. Larry Wolfson, a lawyer for JMB, said yesterday his client agreed Liberty House could conduct its own survey and “make whatever adjustments are necessary, if there are any” to the salaries of those not covered by the executive pay hike.

Bennett said Liberty House plans to conduct the survey “promptly.”

Liberty House filed for Chapter 11 bankruptcy reorganization on March 19, 1998. The case has been marked by friction between the lenders’ board, appointed the day of the bankruptcy, and the board appointed by JMB.

In August Liberty House, its unsecured creditors, its lenders and the lenders’ board said they were close to agreeing on a joint plan to reorganize the company. JMB, which previously had filed its own plan, was not part of that group.

Yesterday Bennett said resolution of the executive pay dispute does not indicate agreement about other issues in the reorganization.

“Other disagreements remain among the parties in the case,” he said. The reorganization has been slowed since May by a $138 million Internal Revenue Service tax claim against Liberty House and a consolidated tax group of which it was a part.

Yesterday the lenders’ lawyers filed a document asking the court to allow the reorganization to proceed using an estimated value for the claim. King has said the parties cannot estimate the tax claim in crafting their reorganization plans.

July 9, 1999

Liberty Housebankruptcy fees mount

The year-old filing is the most expensive in Hawaii's history

By Peter Wagner, Star-Bulletin

Professional fees in the ongoing Liberty House bankruptcy will top $6.4 million if the latest round of requests are approved by U.S. Bankruptcy Court.

A dozen legal and consulting firms have asked the court to approve $1,324,952 in compensation for services and expenses between Feb. 1 and May 31.

Fees already approved by the court, from the March 19, 1998 bankruptcy filing through January of this year, total $5,098,086.

The $1.3 million request is the smallest of three submittals put before the court since the case was opened last year. The court approved $1.7 million in April and about $3.3 million in December.

Leading the individual fee requests this time around, as in earlier requests, was New York consulting firm Zolfo Cooper, which is asking for $502,909 in fees and expenses.

The company is helping Liberty House put together business and reorganization plans under the Chapter 11 bankruptcy.

Next in size is a $293,319 compensation request from Los Angeles legal firm Hennigan, Mercer and Bennett, the lead law firm representing Liberty House in the case.

Honolulu legal firm Case Bigelow and Lombardi (formerly Case Kay & Lynch), co-counsel to Liberty House, is asking for $137,528.

The Liberty House bankruptcy, the biggest and most complex in the state's history, has eclipsed the Hawaiian Airlines Chapter 11 reorganization (CB: The first bankruptcy), filed in 1993 and wrapped up at a cost of $5.4 million in legal and professional fees.

September 3, 1997

Bishop Estate swings for the fences

Some investments have been home runs;
others, disappointing strikeouts

By Rick Daysog, Honolulu Star-Bulletin

When Hawaiian Airlines flew into financial turbulence several years ago, it cost Kamehameha Schools/Bishop Estate about $700,000.

Bishop Estate had quietly owned about 1 percent of Hawaiian Air through a private investment fund, but the shares lost nearly all their value after the carrier filed for bankruptcy reorganization in 1993, said the fund’s manager, George McCown.

“They weren’t happy campers,” said McCown, partner and founder of Menlo Park, Calif-based McCown de Leeuw & Co., which teamed up with former major league baseball Commissioner Peter Ueberroth in the 1989 buyout of Hawaiian Air.

In many ways, the Hawaiian Air losses underscore Bishop Estate’s swing-for-the-fences investment strategy that has produced its share of home runs as well as a few disappointing whiffs...

Mergers are big hits

The estate also has become an active player in mergers and initial public offerings. Many of its recent big hits have come from those arenas:

> Four years ago, Bishop Estate invested $30 million in Mid Ocean Reinsurance Co. with partners J.P. Morgan & Co., Marsh & McLennan Co. and Texas deal maker Richard Rainwater. The estate’s 5.36 percent stake in the Bermuda-based reinsurance company, which went public in late 1993, today is worth about $106 million. Last year, the estate’s Mid Ocean dividends amounted to about $2.5 million.

> BankAmerica Corp.’s 1992 purchase of Honfed Bank for about $165 million netted a $40 million profit on the estate’s $50 million investment in the local thrift, according to [Henry] Peters....

www.starbulletin.com/97/09/03/news/story3.html

> > > FAST FORWARD TO THE CURRENT BANKRUPTCY > > >

March 10, 2005

Hawaiian Air plan hits
FBI turbulence

A financier's arrest rocks a competing proposal
to revamp the bankrupt airline

By David Segal, Star-Bulletin

One of the principals in an outside group's reorganization plan for Hawaiian Airlines said he intends to withdraw his proposal after a key financial supporter was arrested for allegedly attempting to bribe an undercover FBI agent.

Hawaiian Airlines pilot Robert Konop said yesterday the developments surrounding St. Louis businessman Paul Boghosian's arrest on the eve of the airline's confirmation hearing necessitates pulling the only competing proposal to a company-backed plan for Hawaiian.

All three attorneys connected with the outside group's plan also withdrew from the case yesterday.

Boghosian, president and chief executive of the Barron Group Ltd., had agreed to pay a $500,000 bribe to the agent, who was masquerading as a hedge fund manager, in return for a loan of approximately $2.5 million, according to U.S. Attorney David Kelley in New York City.

The 50-year-old Boghosian was charged with conspiracy to commit bankruptcy fraud and commercial bribery. Each count carries a maximum penalty of five years in prison.

His arrest was announced yesterday by Kelley, U.S. attorney for the Southern District of New York.

The surprising turn of events will likely give a boost to the company-backed reorganization plan that is supported by Hawaiian Airlines trustee Joshua Gotbaum, the airline's unsecured creditors' committee and investor group RC Aviation LLC.

A two-day hearing to confirm the plan begins at 9:30 a.m. today in federal Bankruptcy Court. The company intends to ask for conditional approval of its reorganization plan, pending votes of Hawaiian's pilots and flight attendants on labor contracts.

"I think this makes it clear that there is only one plan of reorganization for Hawaiian Airlines," Gotbaum said.

Konop, though, said he still objects to the trustee-backed plan because he said it will leave the company with too much debt and too little cash. Konop said he intends to argue his points himself in court today.

Boghosian controls Hawaiian Investment Partners Group LLC, which together with the Hawaiian Reorganization Committee LLC and Konop had filed a reorganization plan to bring the carrier out of bankruptcy.

In mid-January, Boghosian attempted to buy RC Aviation's stake in Hawaiian Airlines parent Hawaiian Holdings Inc. for $25 million, then doubled his offer to $50 million, according to court filings. Both offers were rejected by Hawaiian Holdings Chief Executive Larry Hershfield, who also is the managing director of RC Aviation.

Timothy Philipp, Boghosian's personal attorney, said he would not discuss his client's arrest.

"I have no comment until things are resolved -- whatever the current situation is," he said.

Randal Yoshida, the local counsel for the competing group, said he was "disappointed" to hear about the arrest but declined further comment.

Later yesterday, Philipp, Yoshida and New York attorney Eliot Bloom, who was going to handle some of the group's depositions, withdrew from the case.

Konop said yesterday that he did not have much of a reaction to Boghosian's arrest, but suggested Boghosian was set up following a deposition that Boghosian gave to Hawaiian Airlines attorneys on Friday.

"I had no reason to believe he wasn't sincere in what he was saying and what he was trying to accomplish," Konop said. "He put a lot of work into it, and his sole goal was to make sure the Hawaiian reorganization worked out properly."

Ken Elsey, a former principal of Hawaiian Investment Partners, was stunned yesterday by Boghosian's arrest. Elsey said he sold the entity to Boghosian last month for "a token" $10.

"No kidding. Oh, my God. That's a shocker," Elsey said. "I never would have believed it from this guy. That's truly amazing."

Elsey said the financial declarations he saw regarding Boghosian's funding "appeared to be in order."

"I thought (selling Hawaiian Investment Partners to Boghosian) would be a prudent move on my part to allow him to participate in the deal directly as a party of interest since he was providing the money, and all I was primarily doing was trying to seek out some money sources for the project," Elsey said. "If this (alleged fraud) is true, then I was certainly hoodwinked."

In November, Boghosian submitted a declaration to federal Bankruptcy Court testifying that he had access to $300 million needed to fund the plan. Court approval for that plan to be sent to creditors was delayed several times, though, so that the Gotbaum-backed plan could be considered by Bankruptcy Court.

On Monday night, Gotbaum, Hawaiian Holdings and RC Aviation said in court papers that the competing plan was a "hoax" and should be disqualified. The papers also said that Boghosian associate William Spencer, who controls E&M Trust, had refused to answer substantive questions about two $500 million deposits the trust allegedly had in ABN-Amro banks in Taiwan and the Netherlands. The criminal complaint filed against Boghosian yesterday said that ABN-Amro account numbers listed in documents submitted to the Bankruptcy Court were not valid.

The complaint against Boghosian also alleges that in January he solicited funds from the undercover agent's hedge fund by requesting $2 million in "mobilization funds" to cover, among other things, legal expenses related to the Hawaiian Airlines reorganization.

Boghosian allegedly told the agent that he had commitments for additional funding but that the funds had not been transmitted.

Later, the complaint alleges, Boghosian asked whether the agent's hedge fund would provide approximately $200 million required for the Hawaiian Investment Partners plan. On Feb. 21 the agent and Boghosian met in Manhattan where the agent allegedly told Boghosian that the supporting documents submitted to Bankruptcy Court on behalf of Hawaiian Investment Partners were bogus.

The agent, according to the complaint, warned Boghosian that the Hawaiian Airlines deal would collapse because there was no real funding and that for the agent to get his hedge fund to make a loan, the agent wanted a kickback of about $500,000 from the loan proceeds.

www.hawaiianair.com

$ $ $

From the Hawaiian Airlines Chapter 11 Claims Administration Website:

Some of the interesting listed creditors:

ACE American Insurance Co., San Diego, CA

AIG Aviation Inc., Atlanta, GA

AIG Hawaii Insurance Co., Honolulu, HI

AIG Law Dept-Bankruptcy, Attn: David A. Levin, Esq., New York, NY

AIGAMAUA AVEGALIO, Pago Pago

Lyn Anzai, 1645 Bertram St., Honolulu, HI 96816

Aon Consulting, Inc., Honolulu, HI

AIU Insurance Co., Japan (AIG)

Allstate Insurance Co., Roanoke, VA
(Also see: http://www.allstateinsurancesucks.com/Lawsuits.htm)

American Family Insurance Group, Kansas City, MO

Amica Mutual Insurance Co., Costa Mesa, CA

Aviation Insurance Agency, Atlanta, GA

Aviation Insurance Services Pacific, Inc., Las Vegas, NV

AXA Corporate Solutions Insurance Co, Paris, France

Cal Farm Insurance, Sacramento, CA

Chubb Group of Insurance Co., New York, NY

CIGNA Group Insurance, Philadelphia, PA

CNA Insurance Companies, Des Moines, IA

Employers Insurance Co. of Nevada, Reno, NV

Federal Insurance Company, c/o Chubb Group, San Francisco, CA

Federal Insurance Company, c/o Marsh USA, Inc., Seattle, WA

Fireman’s Fund Insurance Co., Honolulu, HI

Hartford Fire Insurance Co., Hartford, CT

Hawaiian Insurance Consultants (AIG), Honolulu, HI

Insurance Ltd Fortis, United Kingdom

Internal Revenue Service: Kailua-Kona, HI; Seattle, WA; Fresno, CA; Wailuku, Maui; Memphis, TN; Ogden, UT; Monterey Park, CA; Cincinnati, OH; Honolulu, HI; Washington, DC.

Island Insurance Co. Ltd., Honolulu, HI

Marr Hipp Jones & Pepper, LLP, Honolulu, HI

National Pacific Insurance Co., Pago Pago

National Union Fire Insurance Co. of PA (AIG), New York, NY

New York Life Insurance Co., Honolulu, HI

Prudential Insurance Company, Florham Park, NJ

RLI Insurance Company, Houston, TX

Royal Insurance Company, c/o Hobbs Group, San Diego, CA

Rush Moore Craven Sutton Morry & Beh, Attn: Susan Tius, Honolulu, HI

Steven Guttman, Kessner Duca Umebayashi ..., Honolulu, Hawaii

State Compensation Insurance Fund, San Francisco, CA

Tokio Marine & Fire Insurance Co., Japan