USD8m fee sought by Hawaiian Airlines bankruptcy trustee

Airline Industry Information, August 10, 2005

AIRLINE INDUSTRY INFORMATION-(C)1997-2005 M2 COMMUNICATIONS LTD

An USD8m fee is being sought by Joshua Gotbaum, the trustee who assisted Hawaiian Airlines in its two-year bankruptcy case.

Gotbaum asserts that as his reorganisation plan allowed the airline to repay its creditors in full and enabled the retention of shares by existing stockholders, he is entitled to the fee.

A filing for the funds was placed with the US Bankruptcy Court on Monday (8 August). The fee would be in addition to the USD1.4m that Gotbaum has previously received from the airline to cover his salary and other expenses. In addition Gotbaum has also authorised a USD1.75m success fee as sought by Simat, Helliesen & Eichner Inc, an airline consultant.

According to The Associated Press, the chairman of Hawaiian's parent company and the chairman of the airline's pilot union both called the request "outrageous".

A hearing has been scheduled for 21 September by US Bankruptcy Judge Robert Faris regarding the fees requested by Gotbaum and the airline's consultancy.

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