State denies Hawaiian Telcom request to increase credit line - Pacific Business News (Honolulu):

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The financially troubled phone company in Februar soughtthe PUC's approval to increase its revolvingt credit facility to $150 milliob from $90 million. In its the PUC sided with the office of the stateConsumee Advocate, who had recommended the commission not approve the The Consumer Advocate said allowin Hawaiian Telcom to incur additional debt would not be in the public interest, noting the recent downgrading of Hawaiian Telcom's bonds due to poor financialo performance. Hawaiian Telcom last week reporte d a lossof $40.1 million on operatinvg revenue of $112.4 million for the three months ended March 31. The company'es year-end debt for 2007 totaled $972.5 million.
The PUC's 30-page decisiohn states that Hawaiian Telcom in March drewapproximately $73 milliom from the revolving credit and placesd the funds in a money market account for future use. The decisionh concluded that Hawaiian which was purchased byof Washington, D.C. in has not demonstrated a need for theadditional "What we've discussed with the PUC is, given the financial market, we believe that securin g the right to increase the revolver is an assett the company should preserve, that's different from a reques t to draw on that revolver," Hawaiian Telcom's CEO Stephen said in a conference call last "Assuming the PUC is the definitive gating the company has sufficient liquidity for the foreseeabl future.
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