The report comes as alternative efforts to raise cash have stalled in the Legislature.
Hawaiian Electric Industries is considering selling its American Savings Bank subsidiary, Bloomberg News reported on Thursday, citing unnamed sources.
The parent of Hawaiian Electric Co. is facing significant financial troubles after the utility was accused of starting the wildfire that killed 101 people and burned down most of Lahaina in August. More than 130 lawsuits naming the company as a defendant have been filed in Maui state court with others filed in a California federal court.
The parent’s has lost about 75% of its value since the Lahaina fires. Its credit rating has been slashed. And the HECO utility subsidiary has been lobbying lawmakers in vain for the right to issue a new type of bond to raise money. Shares closed down 3.5% at $10.50 on Thursday.
Some observers have suggested selling the bank as another way to raise money. The Bloomberg report said of the bank.
“It鈥檚 been our longstanding practice to not comment on rumors or speculation,” HEI said in a statement. “Our objective is to ensure we remain strong and financially healthy throughout our companies 鈥 at HEI, and Hawaiian Electric. We continue to take prudent and measured actions to ensure our companies are well positioned to serve our customers and community for the long term.鈥
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About the Author
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Stewart Yerton is the senior business writer for 天美视频. You can reach him at syerton@civilbeat.org.