Hawaii Medical Center bankruptcy similar to Aloha Airlines

David Farmer
David Farmer

By Tim Sakahara - bio | email

HONOLULU (HawaiiNewsNow) - When Aloha Airlines shutdown people were shocked. No one wanted it to happen but it did and the same thing could end up happening to the Hawaii Medical Center hospitals.

Employees at the East hospital in Liliha say it was business as usual.  They come to work and hope for the best.

"It's a Hail Mary from about 80 yards," said David Farmer, Bankruptcy Attorney.  "It's not looking good I'm sure everyone is trying their best in the back rooms to scramble and try to find the plan B but there is no indication there is something afoot."

Farmer says if Monday's hearing comes around and there's no new buyer the court will look to see if the hospital is bleeding cash.

"It all depends if their funding source dries up. If they cannot operate and they cannot pay their bills the bankruptcy court will not allow them to continue in Chapter 11," said Farmer.

That means they could collapse into Chapter 7, liquidating assets to pay creditors.  It's similar to what happened to Aloha Airlines.

"There was a lender problem in Aloha as well," said Farmer. "There is a domino effect so people's lives are very much affected by the failure of an institution."

Farmer was the bankruptcy attorney involved with the Aloha Airlines shutdown and while the airline and hospital industries are different there are plenty of similarities in that both sectors are stressed, both have plenty of employees affected and they both are praying for a last minute miracle.

"I think everyone certainly in our community, I don't think anyone is thinking anything hoping for anything but success and pulling for the Hail Mary pass," said Farmer.

There are a lot of different what if scenarios but we should all know a lot more for sure after Monday's hearing.

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