SOURCE: Hawaii Pacific Teleport

Hawaii Pacific Teleport

May 21, 2012 08:00 ET

Hawaii Court Confirms Hawaii Pacific Teleport's Reorganization Plan

HONOLULU, HI--(Marketwire - May 21, 2012) - Hawaii Pacific Teleport ("HPT") today announces that the U.S. Bankruptcy Court, District of Hawaii ("the Court") has confirmed its pre-packaged Plan of Reorganization (the "Plan"), which clears the way for HPT to emerge from its Debtor-in-Possession ("DIP") Chapter 11 reorganization. HPT has continued to provide uninterrupted service to its customers during the reorganization. The confirmed Plan positions HPT with no debt on its balance sheet, a clear ownership structure, and a renewed ability to build and expand its business strategy.

HPT received authorization from the Court to borrow capital from 1050 Piiholo LLC, a Hawaii company, in the form of a DIP loan. On the Plan's effective date, the DIP loan will be converted to equity, at which point 1050 Piiholo LLC and Hawaii Capital Holdings LLC (HPT's General Partner that is wholly-owned by Leeana Smith-Ryland), will own 100% of the reorganized company. Hawaii Capital Holdings LLC will continue to manage the company.

"We have worked tirelessly with our creditors to construct a reorganization plan that best meets the interests of everyone involved, including our team, current and potential customers and vendors," states Leeana Smith-Ryland, Managing General Partner of HPT. "We are particularly pleased that we have successfully and consistently met the needs of our customers and vendors during this process and we would like to thank those firms that have supported HPT during this process, as well as our employees for their enduring loyalty and hard work."

Since entering the Chapter 11 DIP bankruptcy in June 2011, HPT sought to determine the best course forward to both strengthen its financial position and deepen its service offerings. Almost immediately, the company was able to turn around its month-to-month operating margins and during the last few months was successfully able to restructure its debt. HPT was also able to establish additional sources of revenue and looks forward to developing new relationships leveraging its strategic location and access to both fiber optic and satellite networks.

"With this successful restructuring, HPT can now effectively execute its core business of supplying teleport services to its clients, in addition to actively pursuing expansion into new areas of the telecommunications industry," adds Ms. Smith-Ryland.

"HPT is very well positioned to continue to provide reliable and cost effective solutions to our customers," adds Jean-Robert Barallon, Vice President of Sales. "We took full advantage of the time during the DIP process to strengthen our ownership structure, team, and financial condition. We are now poised to develop our existing relationships in the industry, engage in new business, and pursue strategic partnership opportunities."

About Hawaii Pacific Teleport

Hawaii Pacific Teleport (HPT) is a satellite teleport providing a bridge between Asia's markets and the rest of the world. HPT's unique infrastructure leverages Hawaii's strategic location as a mid-point between Asia and the Americas, and low-cost high capacity submarine fiber between the US and Hawaii, to offer a complete international telecommunications facility for telephony, VoIP, videoconferencing, VPN, DVB-IP multicasting, IP connectivity and television broadcasting services.

Please visit or contact HPT at for additional information.

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