Hawaiian Airlines' creditors committee backs joint plan of reorganization

New York, Aug. 27 - Hawaiian Airlines' official committee of unsecured creditors has agreed to back the company's joint plan of reorganization, the U.S. Trustee in the bankruptcy case said Friday.

The joint plan, announced Thursday, already has the support of the Honolulu-based airline's parent company, Hawaiian Holdings Inc., and the U.S. Trustee.

Under the proposed reorganization, creditors' claims will be paid in full in cash, stock and notes.

Under the plan RC Aviation LLC will invest $160 million to purchase claims and reorganize the airline. RC Aviation recently acquired a "substantial" equity interest in Hawaiian Holdings. Ranch Capital, whose chairman Larry Hershfield is also chairman of Hawaiian Holdings, is the managing member of RC Aviation.

Under the plan, Hawaiian Airlines' aircraft lessors, its largest creditors, would receive 100% of their claim, either as 50% cash and 50% stock or as long-term notes.

Other creditors will be offered a choice of either 100% cash or 50% cash and 50% stock for their claim.

Mark Dunkerley, Hawaiian Airlines' president and chief operating officer, will become chief executive officer. No other significant changes in management are contemplated. Hawaiian Holdings would resume control of the airline.

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