Hawaii Superferry Files Bankruptcy

In March, Hawaii's supreme court ruled that Hawaii Superferry could not operate while awaiting the results of environmental impact studies, which were expected to take many months. At the time the company shut down, it said it was looking for charter opportunities for the ship outside of Hawaii until it could again operate in the state.

Those opportunities did not materialize as quickly as the company hoped, and the company is running out of cash. They filed for Chapter 11 bankruptcy over the weekend. That would indicate that the company does intend to reorganize, restructuring their debt, rather than liquidating (where they would have filed a Chapter 7 bankruptcy).

From the Superferry department:

The legal obstacles have been removed (at least temporarily), and the Hawaii Superferry has finally been able to set a new launch date of December 1 for the start of their service between Oahu and Maui. The line is offering an introductory fare of $29 per person, each way.

Service between Oahu and Kauai, part of the original plan, will start at a later date.

More information is available on the line's website.

From the legislative workaround department:

Hawaii's Superferry may finally be just about ready to begin regular operations. Just as the first vessel was to enter service last month, the line ran up against a legal obstacle, that if not dealt with, would have forced the line to move elsewhere in order to try to avoid bankruptcy.

Superferry had a well-laid out plan, years in the making (with millions of dollars invested), and they thought they had complied with all the rules to enter service in Hawaii. Many people in Hawaii want the service, which would be the first regularly-scheduled ferry service between the islands. There are also many who oppose it on environmental grounds and just general principles. Just days before the service was to start, the latter faction succeeded in getting an injunction to stop the service until a complete environmental study could be completed, which could take months or years. During the first scheduled trial runs, there were also those who physically blocked the ferry from the harbor at Kauai.

Both houses of Hawaii's legislature have now passed legislation which will allow the Superferry to operate while the environmental study is being completed, and allows the governor (who is a supporter of the service) to impose rules on the line by executive order to safeguard the environment during the time the study is ongoing. She is expected to sign the legislation next week.

It again appears the Superferry is about to enter service, but they (and the Coast Guard) will still have to deal with the people who want to physically block the vessel.

Friday's article in the Honolulu Advertiser explains the legislative workaround. More information on the service itself is available on the Superferry website.

Update Nov 03: There is also an interesting article in the Honolulu Star Bulletin which gives some additional perspective.

From the Hawaii department:

While it's outside the realm of the type of passenger shipping that we normally cover, we think the launch of Hawaii's ferry service is significant and worth a look.

The Hawaii SuperFerry has set its long-awaited launch date for August 28. The initial routes will be from Honolulu to Kahului (Maui) and Honolulu to Nawiliwili (Kauai).

There are lots of interesting things on the company's website at HawaiiSuperFerry.com.