US communications regulator the FCC has approved Hawaiian Telcom’s bid to exit bankruptcy.
Hawaiian Telcom is the incumbent local exchange carrier and dominant telephone company, serving the US state of Hawaii.
It was formed in 2005 by private equity…
US communications regulator the FCC has approved Hawaiian Telcom’s bid to exit bankruptcy.
Hawaiian Telcom is the incumbent local exchange carrier and dominant telephone company, serving the US state of Hawaii.
It was formed in 2005 by private equity shop, The Carlyle Group, following its purchase of the Hawaii assets of Verizon.
The FCC signed off on Hawaiian Telcom’s ‘transfer of control’, a required step before a new board of directors can officially be appointed.
FCC oversight was required because more than 25% of the company?s ownership qualified as foreign. In accordance with FCC regulations, the Department of Justice reviewed Hawaiian Telcom?s application to ensure that its new ownership model did not pose a risk to national security, law enforcement or public safety. Earlier this month, the DoJ notified the FCC that it had no objection to the application.
With the FCC approval under its belt, Hawaiian Telcom is now awaiting the blessing of the Public Utilities Commission.
Hawaiian Telcom filed for Chapter 11 Bankruptcy protection in December 2008. In June 2009, the company filed a Plan of Reorganization that reduced its debt from $1.15 billion to $300 million. The United States Bankruptcy Court for the District of Hawaii in Honolulu confirmed the Plan in November 2009.
Representatives of Hawaii Telcom were not available for comment at the time of going to press.
