Judge tells Island Air workers they might not get final pay
HONOLULU — Island Air employees have been told by a bankruptcy judge that there is no guarantee they will receive their final paychecks.
Judge Robert Faris told the employees they are “entitled to the truth,” the Honolulu Star-Advertiser reported .
Faris on Wednesday approved a motion to convert the bankruptcy case to a Chapter 7 liquidation from a Chapter 11 reorganization. A trustee and others have been hired for that process, and Faris said they will be paid before the employees.
“The sad but the true news is that nobody knows right now whether or when those last wages are going to get paid,” Faris said. “The trustee will have to get his or her arms around the case, try to gather as much money as possible. How much money the trustee will be able to gather will be anybody’s guess and the trustee would then distribute that money.”
After the trustee and others are paid, the next priority is to people who are owed money for goods or services provided after Oct. 16 when Island Air filed for Chapter 11 bankruptcy protection. That group would include the employees.
After all assets are sold off for cash, if there is still not enough money to pay creditors, including employees, the creditors may get only a portion of what they are owed or nothing.
“I don’t know if all the other bills got paid,” Faris said. “I do know that aircraft rent apparently did not get paid so there will be quite a few claims to share in whatever money the trustee is able to gather, and nobody knows what those claims are going to be. … So the sad but true answer is that nobody can say whether those wages are going to get paid or how much is going to get paid.”
Island Air ceased operations Nov. 10. The employees have not been paid for the work they did this month.
CEO David Uchiyama said earlier this week that the pay period encompasses about 10 days. He was present at the hearing Wednesday and when asked if he had anything to say, he responded, “I don’t have any comment.”
Island Air’s 423 employees potentially could have to wait years to get paid, if at all, depending how quickly the case winds its way through bankruptcy.
Honolulu officials consider restricting large-scale homes
HONOLULU — The Honolulu City Council is considering restricting large homes in residential neighborhoods.
The City Council on Thursday heard public comment both for and against two measures on the large homes, Hawaii News Now reported .
Resident Ninjin Miao said the homes are used by multi-generational families that can’t afford condominiums being built.
“Think about Kakaako area, all those new-built condos,” Miao said. “Can an ordinary working-class afford those condos? They cannot. And the solution is buying ohana housing, all the multi-generational family live in one house and I don’t see any problem with that.”
The first measure would put a temporary ban on all large-scale homes, but that was deferred and is expected to be discussed in January.
The second measure, which moves to the full council next month, would “limit the floor area” of a single-family home.
Opponents of the bills said restricting the homes would stifle efforts to put more affordable housing in older neighborhoods.
City Councilman Ikaika Anderson, however, said the homes are changing the community’s character and create parking problems.
“If you wanna do this type of apartment-zone living, buy an apartment-zoned property,” Anderson said. “If it’s more expensive that’s not my problem, that’s your problem.”
Maui panel urges state to keep apartment complex affordable
WAILUKU, Hawaii — A Maui County Council committee approved a resolution urging Hawaii’s governor and lawmakers to keep an apartment complex affordable amid the possibility that rents could rise to market rates in 2019.
Members of the Housing, Human Services and Transportation Committee said the move this week is not a solution but they plan to keep trying to persuade lawmakers to take action on the Front Street Apartments in Lahaina, The Maui News reported .
“It’s going to take more than just approving this today,” Bob Carroll, a committee member, said Thursday. “It’s going to take one-on-one talking to our legislators, actually going to Honolulu and making an all-out effort.”
State and private developers built the 142-unit complex as an affordable housing project in 2001. About 250 to 300 people live there, paying lower-than-average amounts for an area that has among the highest rents on the island.
Low-income housing projects are expected to stay affordable for 50 years, said Carol Reimann, director of the county Department of Housing and Human Concerns.
But the federal tax code was changed in 2012 to allow investors to sell such projects after 14 years, said Gary Kubota, who serves as a community liaison for the tenants.
The state intended to buy the complex when it went on the market, but it was listed for $15.4 million. The state could not legally buy it because the price was above the appraised value of $8.7 million. The owners could not find a buyer within a year, so they are allowed to raise rents in August 2019.
Lawmakers introduced measures earlier this year aimed at keeping the apartments affordable. The House legislation died in February, and the Senate bill was tabled in April.
State Sen. Roz Baker, a Democrat whose district includes the apartment complex, said it is a top priority and she plans to introduce another measure.
“What I think we want to do is make sure that we keep the property in the range for folks that are currently living there,” Baker said. “We think we have a pathway, and we’re going to continue to pursue it.”
From wire sources