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Beats updater hack5/18/2023 The lawsuit pits some of Hawaii’s oldest and most prestigious companies against each other. Its defense comes down to a simple argument: the bank had the right to sell Hawaiian Host’s debt to anyone it wanted. In addition, some of First Hawaiian’s court filings are public. A lot of that was on the infrastructure side.”Ĭourt documents show that instead of being able to focus on such reinvestments, Hawaiian Host got bogged down fighting Delgado’s takeover attempt, which was supported by First Hawaiian.Īlthough some key documents in the ongoing state court litigation are hidden under seal or protective orders, detailed narratives are laid out in the federal court matter that led to the $13 million arbitration award for Hawaiian Host. “The company needed a ton of reinvestment. “Obviously the company went through some very difficult challenges,” Schultz said. In an interview, Hawaiian Host’s chief executive, Ed Schultz, declined to discuss the lawsuit but acknowledged the early stages of the pandemic marked a particularly hard time for the company, as tourists to the islands disappeared at a time when Hawaiian Host was looking to make big investments to upgrade facilities on Oahu and the Big Island. Founded in 1960 by Mamoru and Aiko Takitani, the company known for its chocolate-covered mac nuts and Caramacs candies has been struggling for years because of massive debt it took on to acquire the Mauna Loa Macadamia Nut Co. from The Hershey Co. The legal battle is unfolding against a major turn-around effort by Hawaiian Host management. First Hawaiian lawyers Craig Shikuma and Ken Nakasone did not return calls seeking comment. Hawaiian Host’s attorney, Joachim Cox, said the company’s position was laid out in extensive court documents and declined further comment. Hawaiian Host Group, which also owns the Mauna Loa brand, accused First Hawaiian Bank of illegally interfering with a contract and business opportunities presented to the company when it was struggling during the early stages of the pandemic. But the candy maker is pressing forward with a separate lawsuit against the bank in state court. Hawaiian Host won a first round in arbitration, which resulted in a $13 million award for the company and allowed it to raise money from an investor who has vowed to keep operations in Hawaii. In court documents, Hawaiian Host alleges that First Hawaiian improperly tried to help engineer what amounted to a hostile takeover by a Philippine businessman, Jose Richard “Ricky” Delgado, even though Delgado wouldn’t promise to keep operations in Hawaii or honor union contracts. The local candy company Hawaiian Host Group, which also owns the Mauna Loa macadamia nut brand, is engaged in a bitter lawsuit with its longtime banker, First Hawaiian Bank, in a matter stemming from the darkest days of the pandemic, when Hawaiian Host was on the verge of bankruptcy. But it is pressing forward with a lawsuit in state court against First Hawaiian Bank. Hawaiian Host won a first round in arbitration.
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