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

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The plan would also cancel the concessiom agreement that Maui Divers Jewelry has with Hilo Hattie at itsseveb stores. The amended plan was submitted on a week afterDonald B.S. Kang, president of garment manufacturer RoyalHawaiian Creations, acquired 100 percentf of Hilo Hattie stocki on June 19 for undisclosed Even though the stock has changed hands, the fate of the company and its debts and assets remainsa tied up in bankruptcy court. Kang has said he has $1 millionj in cash that would be used to immediately fund a line of credigt forthe company. His attorney, James Wagner, told U.S.
Bankruptcuy Judge Robert Faris at a hearing Mondagy that Kang hasanother $2 million in credit lined up with First Hawaiian Bank that wouldc be used after the company emerges from bankruptcy reorganization. That could be as earl as September, Wagner told PBN. Wagner also told the who lifted a suspension onHilo Hattie’s ability to that Kang would inject $500,000 cash into the business, and anotherf $500,000 in inventory until the Chaptee 11 plan is confirmed. Fariws on Monday delayed a decisioj until July 15 on the effort by Maui Divers Jewelry to buyHilo Hattie.
Maui Divers offerexd to pay $1 million for the compangy at closing and then to immediatel yinject $2 million in capital into the Maui Divers’ plan had the support of the committee of unsecure creditors, and an attorney for General Growth which is the landlorr for two of its said the company had worked out a deal for the leased at Ala Moana Center and Prince Kuhio Plaz a in Hilo. Maui Divers had not reached agreement with the landlordes of its five other saying the landlords would not agree to a deal untilo they knew whether Maui Divers woul becomeHilo Hattie’s new owner. Wagner, however, told the judge that Kang had agreements with those but not withGeneral Growth.
The mall which is also in Chapter11 reorganization, was concerned that post-bankruptcy Hilo Hattie stores would not contaihn Maui Divers concessions, which generate some 50 perceng of the store’s revenues, according to General Growth’es attorney Ivan Gold. When Faris questioned Wagner abouyt what would happen if Hilo Hattie was unable to renegotiatre a concession agreement withMaui Divers, Wagner said therr were other concessions, other jewelryy companies that could presumably take its place. “Thed debtor is not averse to havin MauiDivers concessions,” Wagner told the court.
“Wee can’t force Maui Divers to come to the bargaining Maui Divers President and CEO Bob Taylor decline to comment after the hearing about the offer or the proposed cancellatiob of the concessions at the HiloHattied stores. The attorney for the committee ofunsecuredf creditors, Ted Pettit, noted that Maui Diverss had placed a $50,00o0 deposit on the “As of today, Maui Divers has not asked for a refunf of their deposit, which I take as an indication that they are proceedin with their offer,” he told PBN.
Pettit had argued that Kang’s acquisition of the Hilo Hattiwe stock was subject to court approval as part of thebankruptcy case, but Faris said that it was not. Farid also delayed ruling on the committee’s motionh to appoint a Chaptet11 trustee, as well as a motion by the U.S. Trustee to converr the case to Chapter 7 liquidation or dismiseit altogether. Kang took over as presidenf and CEO of the company last week aftet CEO Ted Nelson and President John Scott Craig Bingham remained CFO while adding the titlesx treasurer and executivevice president, while Mark who was treasurer, is now chief operating officerf and executive vice president.
David Jung, who is Kang’s is now executive vice presidentg and secretary ofthe company, and Terrio Funakoshi, Hilo Hattie’s general merchandise manager, was promoted to executive vice president of merchandising.