Beverly Hills-based lender Imperial Capital played a key role in the $150 million reorganization plan for Hawaiian Airlines Inc. that was set to be approved late last week.

Imperial Capital co-President Jason Reese advised Ranch Capital LLC, the largest shareholder in Hawaiian Holdings Inc., the privately held parent of publicly held Hawaiian Airlines. Larry Hershfield, chairman of Hawaiian Holdings and chief executive of Ranch Capital, submitted the Hawaiian Airlines plan along with airline trustee Joshua Gotbaum. Hawaiian Holdings is not part of the bankruptcy.

The plan, which would pay back the airline's largest creditors and allow it to emerge from Chapter 11 bankruptcy with $100 million in cash, was set to go before U.S. Bankruptcy Court Judge Robert Faris for confirmation.

Reese said the plan includes a $25 million revolving line of credit, a $25 million term loan from asset-based lender Wells Fargo Foothill, and a $100 million convertible bond issue.

Under the plan, the Honolulu-based airline's largest creditors Boeing Capital Corp. and Ansett Worldwide Aviation Services would be fully repaid either in cash, stock or notes. The emerging company would have $100 million in cash and $25 million in debt, Reese said.

Ranch Capital bought 10 million shares of Hawaiian Airlines last year for $41.1 million and said it would commit at least $160 million to restructure the airline. The stock was trading at pennies on the dollar two years ago but had jumped to $6.60 a share as of last week.

Hawaiian Airlines filed for Chapter 11 bankruptcy protection in 2003. Last month, the airline reached a tentative three-year agreement with its pilots' union, one of six unions that had to ratify new contracts for the carrier to exit bankruptcy.

Hawaiian Airlines' former chairman, John Adams, was ousted from the carrier by a bankruptcy judge last year after failing to disclose important negative financial information to shareholders after netting $17 million in stock buyback. He agreed to pay $2.5 million to settle claims with the Securities and Exchange Commission.
Kate Berry

Building Up
New York investment group High Rise Capital Management LP is increasing its bet on L.A.-based Thomas Properties Group Inc.

High Rise Capital Management has added about 300,000 shares to the 1.6 million it already owned in Thomas Properties, the second largest landlord in downtown L.A.'s Bunker Hill.

The acquisition cost the group about $3.4 million and it increases its stake in Thomas Properties by 20 percent. High Rise paid between $12 and $12.63 for its most recent purchases.

Even with the added stock, High Rise Capital Management remains the third largest Thomas Properties Group shareholder, after Third Avenue Management LLC and Wellington Management Co.

David O'Connor, president of High Rise Capital Management, was traveling and unavailable for comment.
Andy Fixmer

Homestore Settlement
Shareholders of Homestore Inc. who settled claims against the company last year will begin receiving individual distributions within 30 to 60 days.

The settlement approved by a Federal District Court judge in March 2004, was valued at $13 million in cash and about $80 million in stock. One plaintiff objected to the settlement, but that was dismissed an appeal.

The class members are shareholders, including the California State Teachers' Retirement System, who bought stock between Jan. 1, 2000, and Dec. 21, 2001.

Homestore has already placed $13 million in cash and 20 million new shares of stock in an escrow account for the class. Shares in the settlement would total $50.6 million, based on the share price of the settlement when it was initially agreed upon between Homestore and CalStrs.

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