Hawaii Superferry to Be Shut Down

[Dos Equis]

An example of the kind of damage extremist tree huggers can do.  Here we are in the middle of a recession, a business comes in that nearly everyone wants, improves the transportation system, and creates jobs . . . but noooooo, someone wants an Environmental Impact Statement to ensure we aren't chasing a few fish away.     This might make a little more sense if we didn't have all those mammoth cruise, cargo, and Navy ships all over the place.   

Hawaii Superferry seeking new work for Alakai 
Advertiser Staff

Hawaii Superferry will search for options to lease out the Alakai after a state Supreme Court ruling on Monday found that the law which allowed the catamaran to operate during an environmental review was unconstitutional, Superferry president and chief executive officer Thomas Fargo said this morning.

Fargo called the court's ruling "a terrible decision" but said it was the law. He said Superferry will look for commercial and military charter options for the Alakai and a second catamaran but left open the possibility of resuming ferry operations in Hawaii in the future.

The Alakai left Honolulu Harbor early this morning for its final round trip to Maui to collect passengers and vehicles. Many of the Superferry employees, who are being laid off tomorrow, went on the voyage.

"The problem before us today is there appears to be no short-term solution to this ruling," Fargo said at a news conference at the harbor's Pier 19.

"To conduct another EIS (environmental impact statement), even with the work done to date, and move it through the legal review that it would have to go through might take a year or so. And other options don't provide the certainty that's necessary to sustain a business.

"As a result, we're going to have to go out and find other employment for Alakai, for now. Obviously, this is not even close to our preferred and desired outcome. We have believed from the very start, and continue to believe, that there's a clear and unmet need for an interisland high-speed ferry system for this state.

"My hope, our hope, is that the conditions will eventually be such that we can realize that vision here in Hawaii."

Fargo would not address whether Superferry would repay the state for $40 million in harbor improvements other than to say that the payments were based on fees generated by ferry service. He would also not discuss the extent of the company's financial losses or the possibility that Superferry might file a lawsuit against the state.

Fargo said Superferry proved, after a year of operation, that it took adequate steps to protect the environment.

Fargo, after mentioning that the military might want to lease the Alakai, addressed speculation by some activists who have opposed the project that Superferry was designed from the start as a military operation.

"That's absolutely not true," said Fargo, a former Navy admiral. "We certainly wouldn't have gone to the trouble to paint Alakai in the manner that we did, to appoint her with 836 first-class seats, to spend the huge sums of money that we did to establish service here in Hawaii if that was our goal.

"The goal that's unmistakable was to provide regular and reliable commercial ferry service in these Islands."

Early Superferry executives — and main investor John F. Lehman, a former Navy secretary — had touted the ferry's military utility in discussions with the state, including the possibility that it could be used to transport the Army's Stryker brigade between Oahu and the Big Island. The second vessel, which had been planned for Superferry's expansion to the Big Island, includes a vehicle ramp that could make it more useful to the military.

Gov. Linda Lingle and state House and Senate leaders have said they would ask the state Supreme Court to reconsider aspects of its ruling. The court found that the Superferry was special legislation written for a single company.

The governor and lawmakers are concerned, among other things, that the ruling will unduly restrict the Legislature's power.

A contractor hired by the state was almost finished with the environmental review ordered under the law the court struck down. Fargo said it was up to the state whether to complete the environmental impact statement under the stricter guidelines of the state's underlying environmental review law.

"I'd like to see all of the pieces put in place so that you could operate an interisland ferry system here in Hawaii," he said.

http://www.honoluluadvertiser.com/article/20090319/BREAKING01/90319020

[loco]

An example of the kind of damage extremist tree huggers can do. 

They should eat more red meat and lay off the soy products.     

[Soul Crusher]

Liberalism is a mental disorder.

[Dos Equis]

They should eat more red meat and lay off the soy products.     

lol.     They should eat more fish.   

[Dos Equis]

Liberalism is a mental disorder.

Pretty selfish position if you ask me.  Also some distorted priorities. 

[Hereford]

yyaaaaay! Now we can just take the intra-island flights like we have always done!

Much better for the environment!

[240 is Back]

nice lib state you live in.

move to redneck country.   

[Dos Equis]

 

Superferry economic fallout begins
Superferry officials will not rule out a return to isle waters, but cannot say when

By Gary Kubota

POSTED: 01:30 a.m. HST, Mar 20, 2009

(Single Page View) | Return to Paginated View

Waipahu resident Sarah Visitacion said she does not know what the future will hold for her nursing education, her 2-year-old son and her husband, Jeffrey, who lost his cabin attendant job with the shutdown of the Hawaii Superferry.

"I might have to go back to work," said Visitacion, who now attends Leeward Community College.

Several Superferry workers expressed sadness at the closing, uncertainty about their job prospects in a recession but also hope that the interisland carrier will again rise to operate in Hawaii waters.

"It's just hit a wave," said Diane Torres, a utility inspector. "We'll come back."

The announcement to shut down operations came Monday, after the Hawaii Supreme Court decided a state law allowing the Superferry to operate while an environmental study was prepared was unconstitutional.

Gov. Linda Lingle wants the Hawaii Supreme Court to reconsider its decision.

Some lawmakers have blamed Lingle for giving bad advice to the Superferry about the environmental requirements necessary to operate in Hawaii waters.

The Maui-Oahu trip yesterday was the Superferry's aloha voyage for many of its 236 employees.

But aloha could mean "goodbye" or "see you later" in the long-term future of the Superferry.

Hawaii Superferry President Tom Fargo said his business has not shut the door on resuming operations in Hawaii, but its short-term future is not good because of the time needed to prepare an environmental impact statement.

"Obviously, this is not even close to our preferred outcome," Fargo said. "We have believed from the start and continue to believe that there is a clear and unmet need for an interisland high-speed ferry system for the state."

The company plans to keep enough employees to maintain its corporate function and assets.

Fargo said even with the work done so far, an environmental impact statement study might take a year or more to complete.

For now the Superferry Alakai plans to look for commercial or military work in or outside of Hawaii.

Several passengers who have businesses said their enterprises and nonprofit groups would suffer without the Superferry.

Love's Bakery carried more than 2 million loaves of bread on the interisland carrier since it began operations in September 2007, and the Superferry donated more than $165,000 in travel to more than 100 groups, the Superferry said.

Construction worker Rex Howell, who was a frequent passenger, said a lot of workers in the building industry relied on the Superferry for commuting to jobs.

Barry Bundy said the absence of the Superferry is going to push back the delivery time for his automobile parts business and raise costs.

"We're considering leaving the islands," Bundy said.

On its final voyage under the operation of the current staff, the Superferry carried 290 passengers and 84 vehicles to Maui and returned with 126 vehicles and 398 passengers to Oahu, including some employees and their families.

Michael Caseria, who worked as an engineer aboard the Superferry, said he wanted to take his wife, Stacy, and daughter and son on the historic voyage. He felt the Superferry helped the islands and should be encouraged to return.

"It's going to benefit Hawaii in the long run," he said.

http://www.starbulletin.com/news/20090320_superferry_economic_fallout_begins.html

[Soul Crusher]

Superferry economic fallout begins
Superferry officials will not rule out a return to isle waters, but cannot say when

By Gary Kubota

POSTED: 01:30 a.m. HST, Mar 20, 2009

(Single Page View) | Return to Paginated View

Waipahu resident Sarah Visitacion said she does not know what the future will hold for her nursing education, her 2-year-old son and her husband, Jeffrey, who lost his cabin attendant job with the shutdown of the Hawaii Superferry.

"I might have to go back to work," said Visitacion, who now attends Leeward Community College.

Several Superferry workers expressed sadness at the closing, uncertainty about their job prospects in a recession but also hope that the interisland carrier will again rise to operate in Hawaii waters.

"It's just hit a wave," said Diane Torres, a utility inspector. "We'll come back."

The announcement to shut down operations came Monday, after the Hawaii Supreme Court decided a state law allowing the Superferry to operate while an environmental study was prepared was unconstitutional.

Gov. Linda Lingle wants the Hawaii Supreme Court to reconsider its decision.

Some lawmakers have blamed Lingle for giving bad advice to the Superferry about the environmental requirements necessary to operate in Hawaii waters.

The Maui-Oahu trip yesterday was the Superferry's aloha voyage for many of its 236 employees.

But aloha could mean "goodbye" or "see you later" in the long-term future of the Superferry.

Hawaii Superferry President Tom Fargo said his business has not shut the door on resuming operations in Hawaii, but its short-term future is not good because of the time needed to prepare an environmental impact statement.

"Obviously, this is not even close to our preferred outcome," Fargo said. "We have believed from the start and continue to believe that there is a clear and unmet need for an interisland high-speed ferry system for the state."

The company plans to keep enough employees to maintain its corporate function and assets.

Fargo said even with the work done so far, an environmental impact statement study might take a year or more to complete.

For now the Superferry Alakai plans to look for commercial or military work in or outside of Hawaii.

Several passengers who have businesses said their enterprises and nonprofit groups would suffer without the Superferry.

Love's Bakery carried more than 2 million loaves of bread on the interisland carrier since it began operations in September 2007, and the Superferry donated more than $165,000 in travel to more than 100 groups, the Superferry said.

Construction worker Rex Howell, who was a frequent passenger, said a lot of workers in the building industry relied on the Superferry for commuting to jobs.

Barry Bundy said the absence of the Superferry is going to push back the delivery time for his automobile parts business and raise costs.

"We're considering leaving the islands," Bundy said.

On its final voyage under the operation of the current staff, the Superferry carried 290 passengers and 84 vehicles to Maui and returned with 126 vehicles and 398 passengers to Oahu, including some employees and their families.

Michael Caseria, who worked as an engineer aboard the Superferry, said he wanted to take his wife, Stacy, and daughter and son on the historic voyage. He felt the Superferry helped the islands and should be encouraged to return.

"It's going to benefit Hawaii in the long run," he said.

http://www.starbulletin.com/news/20090320_superferry_economic_fallout_begins.html

I bet most of these people voted for ZERO.

[Hereford]

Dems win with like 80% every time in HI.

[Dos Equis]

It's crazy.  Only 2 Republican senators in the state senate and 4 (I think) in the house.  All four Congressional reps are liberal Democrats.     

[Soul Crusher]

It's crazy.  Only 2 Republican senators in the state senate and 4 (I think) in the house.  All four Congressional reps are liberal Democrats.     

Liberal mental patients never see the connection between their insanity and the results it produces.

MS is a genius in the phrase he coined.

[240 is Back]

haha.  SuperFairy.

[Dos Equis]

 

Hawaii Superferry files for bankruptcy
Company claims it's unable to operate here, lists debts as much as $100 million

By Derrick DePledge
Advertiser Government Writer

Hawaii Superferry filed for bankruptcy protection yesterday, telling a Delaware court that a Hawai'i Supreme Court ruling caused the Alakai to cease operations in March and has sapped the company's revenues.
Advertisement

Superferry and its parent company, HSF Holding Inc., filed for Chapter 11 bankruptcy protection in U.S. Bankruptcy Court in Delaware. Superferry listed between $1 million and $10 million in assets and $50 million to $100 million in debts.

Superferry has just $1 million in cash and was facing a $2.9 million principal and interest payment on one of the ferry construction loans yesterday. The company listed fewer than 50 creditors, including the state of Hawai'i, and maintained it should not have to make payments on $40 million worth of state harbor improvements because the operating agreement with the state was voided by a Maui court.

Superferry told the bankruptcy court that it plans to liquidate assets and "wind up their business." While sources close to Superferry say it is possible for a "white knight" investor to show interest in the Alakai and a sister catamaran, the Huakai, it would likely be for charter operations and not an immediate return to passenger, cargo and vehicle service in Hawai'i.

The two catamarans are docked in a Mobile, Ala., shipyard owned by J.F. Lehman & Co., the project's main investor.

"As a direct result of the Hawai'i Supreme Court decision last March, Hawaii Superferry had to shut down operations. There has been no relief from that decision," Superferry said in a statement. "With no ability to operate, the company has had no revenues, only ongoing expenses to maintain the vessels Alakai and Huakai, our second ship.

"Our recent objective was to charter the ships outside of Hawai'i, which would keep Hawaii Superferry operating at some capacity. Although there are potential charter opportunities around the world, they take time and haven't materialized in time for the company to meet its required financial obligations. Our efforts to refinance and restructure the company for this interim period with additional investment have not been successful, as yet. Accordingly, a filing of Chapter 11 was an unavoidable next step."
Rough going

The bankruptcy filing could mark an end to Superferry's stormy history in Hawai'i.

While the state Supreme Court ruling in March was cited as the final blow, the company's court filing shows that several factors undermined the ambitious plans for high-speed catamarans to connect the Islands.

Just as Superferry was planning its debut in August 2007, the state Supreme Court ruled that the Lingle administration was in error when it exempted the state harbor improvements for the project from environmental review.

Environmentalists, who had challenged the exemption, moved to block ferry service through a Maui court while protesters halted the catamaran on Kaua'i.

The state Legislature in a special session passed a law, signed by Gov. Linda Lingle, that allowed Superferry to operate while an environmental review was completed. But barge problems on Maui delayed the ferry's immediate return to service.

Superferry argues that the court rulings and delay eroded public confidence in its reliability. Damage to the Alakai in dry dock in February 2008 led to another suspension of service.

Superferry maintains that it demonstrated "outstanding reliability," with service between Honolulu and Maui between April 2008 and the second Supreme Court ruling in March. The court found that the law which allowed Superferry to operate during the environmental review was an unconstitutional special law written for a single company.

"However, by then, the damage to the debtors' reputation had already been inflicted," according to the filing.

Superferry also cited challenging economic conditions last year and in the first quarter of this year that led to lower-than-expected revenues. The recession reduced demand for ferry service among both tourists and local residents.

In addition, Superferry cited an "unprecedented spike" in fuel prices last summer that significantly raised operating expenses. The company said it could not pass the higher fuel prices on to customers because it was competing with airlines for interisland fares.
State caught short

Mike Formby, the deputy director of the state Department of Transportation's harbors' division, said he was disappointed to hear Superferry is liquidating assets and going out of business. The state is in the process of completing an environmental impact statement under Hawai'i's primary environmental review law, and officials had hoped Superferry would be leased for charter for a year or so and then return to Hawai'i.

The Lingle administration, he said, will now have to evaluate how to proceed.

Formby also said the state has taken the position that the operating agreement with Superferry is still in effect. Environmentalists did not move to restore the Maui court order voiding the operating agreement after the Supreme Court ruling in March because Superferry voluntarily ceased operations.

Formby also said the state believes that the operating agreement was only voided for Maui, not the other harbors Superferry planned to serve. He said the state will likely try to recoup the $40 million in harbor improvement costs from Superferry. Otherwise, he said, the costs of the unique vehicle ramps and barges will have to be shared over time by other harbor users.

"My position is that, at this time, the operating agreement is enforceable and it was never unenforceable statewide," he said.

Along with the state, Superferry's major creditors with unsecured claims include MTU, for engine maintenance; Monarch Insurance Services, for workers' compensation insurance; Sodexo Inc., for food, beverage and gift shop services; Laird Chistianson Advertising, for media; Entrix Inc., for consulting; and Hornblower Marine Services, for management. Superferry has also been sued for not paying rent on its leased headquarters at One Waterfront Plaza.

In its bankruptcy filing, Superferry lists the payments to the state and a litigation award to the Sierra Club, Maui Tomorrow and the Kahului Harbor Coalition — the environmental groups that blocked the project in court — as in dispute.

Far bigger financial stakes in Superferry are held by the federal Maritime Administration, which guaranteed construction loans for the two catamarans; and Austal USA, the Mobile, Ala., shipbuilder, which also provided two loans to help with construction.

The principal outstanding on the Maritime Administration-backed construction loans is $135.7 million, while the company has $22.9 million outstanding on the Austal USA loans.

The Maritime Administration and Austal USA have first and second mortgages on the Superferry vessels, while the state has a third mortgage.

Superferry is also in default to Guggenheim Funding LLC for $51.7 million related to a secured note in August 2007.

J.F. Lehman & Co., the largest private investor in the project, put up $85.2 million of the $92.9 million issued in preferred stock. The firm's founder, John F. Lehman, is a former Navy secretary who served on the commission that investigated the Sept. 11, 2001, terrorist attacks.

According to the filing, J.F. Lehman holds a 69 percent majority equity stake in Superferry, Guggenheim could control about 7 percent, and about 80 other investors hold 24 percent. J.F. Lehman also controls seven of 10 seats on the company's board of directors. Thomas Fargo, a retired Navy admiral and Superferry's president and chief executive officer, is a managing director of J.F. Lehman.
'Unfortunate'

State Sen. Sam Slom, R-8th (Kahala, Hawai'i Kai), called the Superferry bankruptcy a "tremendous tragedy for Hawai'i."

Slom said he believes opponents of the project were in the minority and that the Supreme Court's decisions were wrong. He said the ferry had the potential to unite the Islands economically and to create more business opportunities on the Neighbor Islands.

"I think we made a great mistake and I think it's going to be a long, long time before anybody wants to take a risk and invest in Hawai'i again," he said. "And that's a real loss to all of us."

State Senate Majority Leader Gary Hooser, D-7th (Kaua'i, Ni'ihau), who was among those who called for an environmental review of the project before the court rulings, described the Superferry bankruptcy as unfortunate.

"I think it's just another unfortunate chapter in the long saga of the Superferry," he said. "It really is unfortunate that we've come to this point, and we have to figure out a way to move forward from here."

http://www.honoluluadvertiser.com/article/20090531/NEWS09/905310380

[Hedgehog]

Why are some of you blaming either Democrats or 'tree-huggers' for this?
Isn't actually Lingle - a Dem - trying to save the ferry?
It was from what I understand the supreme court who ruled against the ferry traffic.
 

[Dos Equis]

Why are some of you blaming either Democrats or 'tree-huggers' for this?
Isn't actually Lingle - a Dem - trying to save the ferry?
It was from what I understand the supreme court who ruled against the ferry traffic.
 

Because tree huggers are responsible for this.  Lingle is a Republican.  She tried to save the Superferry, along with the liberal legislature (to their credit). 

Superferry was a great idea.  People loved it.  Created jobs.  Helped with interisland transportation.  But after the court ruling Superferry has to do an environmental impact study, which takes a very long time.  Now its gone likely never coming back. 

This is just an insane outcome.  We have mammoth cruise ships, huge Matson cargo ships, and Navy battleships all over the place.  Superferry was like an outrigger canoe compared to what we already have.

But I hope the handful of environmentalist nuts responsible for this are happy.    

[Hedgehog]

Because tree huggers are responsible for this.  Lingle is a Republican.  She tried to save the Superferry, along with the liberal legislature (to their credit). 

Superferry was a great idea.  People loved it.  Created jobs.  Helped with interisland transportation.  But after the court ruling Superferry has to do an environmental impact study, which takes a very long time.  Now its gone likely never coming back. 

This is just an insane outcome.  We have mammoth cruise ships, huge Matson cargo ships, and Navy battleships all over the place.  Superferry was like an outrigger canoe compared to what we already have.

But I hope the handful of environmentalist nuts responsible for this are happy.    

thanks for the correction. And the clarification.

[Dos Equis]

thanks for the correction. And the clarification.

No problem. 

[240 is Back]

beach bum, you're still the original hawaiian super fairy 

[Dos Equis]

 

[240 is Back]

happy hawaiian Islam day!!!!!!!!!!!