As Hawaiian Telecom (HT) works through its bankruptcy proceedings, it has managed to draw the ire of Hawaii's chief executive for proposing a $6 million bonus package for employee bonuses. On Thursday evening, Governor Linda Lingle issued a statement calling the decision "unconscionable" and the state would oppose it in court.
In the statement, published on the Hawaii Reporter web site, Lingle says paying millions in bonuses puts the company in a "precarious position that jeopardizes its long-term viability, as well as threatens Hawaii's economic recovery."
Lingle goes on to note that HT's president and CEO turned down a bonus, so he should know better than to propose a bonus in the middle of a bankruptcy reorganization. She says he "could have and should have" put a stop to the action.
In December, HT filed for bankruptcy. It has until June 30 to file a reorganization plan and figure out how to rework its $1.27 billion in debts owed to 5,000 creditors.
For more:
- Hawaii Reporter reports on Gov. Lingle's statement. Post.
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