Tags: bankruptcy, Bankruptcy Court, Brian Tanner, Hawaii, Hawaiian Telcom, Hawaiian Telcom Communications, Honolulu, Steven Golden

Customer Programs, Employee Programs and Post-Petition Payments to Suppliers Also Approved; Business Will Continue Without Interruption

Hawaiian Telcom Communications, Inc. today announced that it has been granted interim authority from the Bankruptcy Court to utilize its $75 million cash collateral to continue to fund the business in the ordinary course, without interruption.

The Company will pay suppliers for all post-petition goods and services in the normal course of business.

The Bankruptcy Court also approved the Company’s motions to continue to pay and honor all employee wage and benefit programs, and customer programs.

“Customers, employees and suppliers can rest assured that we are dedicated to them and have the capital to stand by our commitments,” said Eric K. Yeaman, Hawaiian Telcom’s president and chief executive officer.

“We have reached our first milestone in this process and these approvals reinforce the value of Hawaiian Telcom to the people of Hawaii and its viability going forward,” continued Yeaman. “We will continue to be unwavering in our dedication to our customers and keenly focused on reducing our debt while building our business.”

The hearing for final approval of the cash collateral motion will take place on January 5, 2009.

Hawaiian Telcom has set-up a toll-free reorganization hotline, (888) 733-1409, for customers, employees, or other interested parties who may have questions related to the reorganization. In addition, parties are encouraged to visit the Company website at www.hawaiiantel.com, for updates and other information surrounding today’s announcement.

Hawaiian Telcom and certain of its subsidiaries filed for relief under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware in Wilmington, on December 1, 2008. The chapter 11 cases are being jointly administered as case number 08-13086.

Forward-Looking Statements

In addition to historical information, this release includes certain statements and predictions that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In particular, any statement, projection or estimate that includes or references the words “believes”, “anticipates”, “intends”, “expects”, or any similar expression falls within the safe harbor of forward-looking statements contained in the Reform Act. Actual results or outcomes may differ materially from those indicated or suggested by any such forward-looking statement for a variety of reasons, including, but not limited to, Hawaiian Telcom’s ability to maintain its market position in communications services, including wireless, wireline and Internet services; general economic trends affecting the purchase or supply of communication services; world and national events that may affect the ability to provide services; changes in the regulatory environment; any rulings, orders or decrees that may be issued by any court or arbitrator; restrictions imposed under various credit facilities and debt instruments; work stoppages caused by labor disputes; adjustments resulting from year-end audit procedures; and Hawaiian Telcom’s ability to develop and launch new products and services. More information on potential risks and uncertainties is available in recent filings with the Securities and Exchange Commission, including Hawaiian Telcom’s annual report on Form 10-K for the fiscal year ended December 31, 2007 and its current report on Form 8-K dated November 3, 2008. It is anticipated that subsequent events and developments will cause estimates to change.

About Hawaiian Telcom

Hawaiian Telcom is the state’s leading telecommunications provider, offering a wide spectrum of telecommunications products and services, which include local and long distance service, managed services, high-speed Internet, and wireless services.

Contacts

Hawaiian Telcom
Brian Tanner, 808-546-3442 (Investor Relations)
Steven Golden, 808-546-3877 (Media Relations)