Hawaiian Telecom bankruptcy exit OK despite TWC objections

The FCC blessed Hawaiian Telecom's (HawTel's) bankruptcy exit despite objections by the state's biggest (and only) cable operator a resurgent telco could pave the way for anti-competitive behavior.

Time Warner Cable (NYSE: TWC-WI) had asked the FCC to attach some conditions to make HawTel provide access to its utility poles, conduits and rights of ways in what the MSO called a "reasonable and nondiscriminatory basis." The FCC said those fears "are not sufficient" and that the bankruptcy exit should proceed as planned.

HawTel, which filed for bankruptcy in December 2008, must next get PUC approval for a reorganization plan that includes going public and issuing 10 million shares of common stock among its creditors. In November a federal bankruptcy court approved a reorganization plan that sliced the telco's $1.15 billion debt to $300 million.

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