REALITY: Everything the Governor is doing regarding a Lahaina settlement is designed to prevent a Hawaiian Electric (HEI) bankruptcy. HEI is a key part of the local power structure. In bankruptcy, HEI would be transferred to out-of-state creditors with no interest in local politicians. The Governor is desperately pushing a fake $4B ‘settlement’ because it could save HEI from bankruptcy--but the 'settlement' is only possible if insurance companies agree to accept $600M rather than $2B. This isn't going to happen. A 'settlement' isn't real unless all parties agree. Green's fake 'settlement' is just more kabuki theater.
Hawaiian Electric shares “could go to zero”
Bankruptcy News: Hawaiian Electric Admits Company may not be a 'Going Concern'
Full Text: Insurance Company Lawyers Debunk Green’s Fake Lahaina Fire Settlement
Trustees Raid KSBE -- 9% of Trust Burned to Save Hawaiian Electric
* * * * *
CB Aug 2, 2024: Hawaii, Maui County, HECO And Others Agree To Pay $4 Billion To Wildfire Victims
Insurance companies, which have paid out more than $2 billion in claims, did not sign on to a settlement term sheet filed in court on Friday and thus remain the last potential holdouts that could prevent a settlement.…
(TRANSLATION: So called 'settlement' does not exist.)
…The term sheet is signed by Creed and fellow plaintiffs liaison counsel Jacob Lowenthal and Jan Apo of Maui and Alexander Robertson IV, class counsel for a case consolidated in federal court.
The term sheet essentially creates a 90-day deadline for one of two things to occur: either the insurers settle the subrogation claims or a court determines that, in the event of a final settlement, the insurers’ recovery would come from policyholders who received settlement payments — and not from the defendants.
(CLUE: Any such ruling would be appealed.)
Creed said insurers “did not agree to this global settlement and are trying to take money back from the victims who paid their premiums and send it off-island to pad their profits. The insurance companies shouldn’t take a penny as long as the victims are not fully compensated.”
(TRANSLATION: So called 'settlement' does not exist.)
Chip Lezy, a Honolulu lawyer representing the insurers, did not return a call for comment….
(TRANSLATION: So called 'settlement' does not exist.)
* * * * *
Hawaiian Electric joins global settlement agreement with others to resolve Maui wildfire litigation
Will help healing across all parties and communities, aid rebuilding
News Release from Hawaiian Electric, 8/2/2024
HONOLULU, August 2, 2024 – Less than a year after the devastating wildfires on Maui, Hawaiian Electric and other parties have reached an agreement in principle to settle all tort claims that arose from the disaster.
Hawaiian Electric and its parent company, Hawaiian Electric Industries (HEI), the State of Hawaii, the County of Maui, Kamehameha Schools, West Maui Land Co., Hawaiian Telcom and Spectrum/Charter Communications have agreed on the terms of a proposed settlement with the lead attorneys for individual and class plaintiffs. Under the proposed terms, which remain subject to final documentation and court approval and do not include any admission of liability, the defendants would collectively pay over $4 billion to resolve all tort claims arising from the Aug. 8, 2023 windstorms and wildfires on Maui. The settlement also would resolve all claims among the defendants. HEI and Hawaiian Electric’s contribution is a total of $1.99 billion (pre-tax) and includes the $75 million previously contributed for the One Ohana Initiative.
“Achieving this resolution will allow all parties to move forward without the added challenges and divisiveness of the litigation process. It will allow all of us to work together more cohesively and effectively to support the people of Lahaina and Maui to create the future they want to see emerge from this tragedy,” said Shelee Kimura, president and CEO of Hawaiian Electric. “For the many affected parties to work with such commitment and focus to reach resolution in a uniquely complex case is a powerful demonstration of how Hawaii comes together in times of crisis.”
“While the settlement will close one chapter in the Maui recovery, the story will continue for many years and generations,” Kimura continued. “Hawaiian Electric’s commitment to our communities is unwavering, and we are resolved to be here for Lahaina for as long as it takes. Our objective is to make sure a tragedy like this never happens again and we mahalo many partners who are working with us shoulder to shoulder to ensure Hawaii’s communities are safe and resilient.”
For Hawaiian Electric, this proposed settlement agreement will bring greater certainty for the company, enabling it to begin to reestablish the financial stability needed to invest in a sustainable and resilient future for Maui and all Hawaii.
The settlement terms were reached after four months of mediation between the defendants and attorneys representing plaintiffs from Lahaina and Upcountry Maui.
At this point, the proposed settlement is an agreement in principle between the defendants and attorneys representing individual and class plaintiffs. The agreement is conditioned on a resolution of the claims of the insurance companies that have paid claims for property loss and other damages, with no additional payments from defendants.
Once a final settlement agreement is signed, it will take effect following judicial review and approval. The payments would begin after such approval and are expected to be made no earlier than mid-2025.
* * * * *
HEI Provides Update Following Global Settlement in Maui Wildfire Tort Litigation
News Release from HEI, 08/02/2024
HONOLULU--Hawaiian Electric Industries, Inc. (NYSE: HE) (“HEI”), today announced that HEI and its subsidiary, Hawaiian Electric Company, Inc. (“Hawaiian Electric”), and other parties have reached an agreement in principle to settle all tort claims related to the August 2023 wildfires on Maui.
HEI and Hawaiian Electric, the State of Hawaiʻi, the County of Maui, Kamehameha Schools, West Maui Land Co., Hawaiian Telcom and Spectrum/Charter Communications have agreed on the terms of a proposed settlement with the lead attorneys for individual and class plaintiffs. Under the proposed terms, which remain subject to final documentation and court approval and do not include any admission of liability, the defendants would collectively pay over $4 billion to resolve all tort claims arising from the Aug. 8, 2023 wildfires on Maui. The settlement also would resolve all claims among the defendants. HEI and Hawaiian Electric’s contribution is a total of $1.99 billion (pre-tax) and includes the $75 million previously contributed for the One ʻOhana Initiative, to be paid in four installments.
Scott Seu, President and CEO of HEI, stated, “One of our core values in Hawaiʻi is the concept of laulima , which means many hands working together. Our Board and management are pleased to have reached this agreement in principle on an expedited basis, which embodies the spirit of this concept as we come together on a path forward. Not only is this good for our community, but we are confident that this settlement represents the best outcome for HEI, as it provides a clear line of sight toward resolution of the wildfire-related tort litigation and increased certainty for our company’s path ahead. In the coming months, we will be focused on finalizing the agreement and regaining the strength of our enterprise.”
Settlement Details
The settlement terms were reached after four months of mediation between the defendants and attorneys representing plaintiffs from Lahaina and Upcountry Maui. At this point, the proposed settlement is an agreement in principle between the defendants and attorneys representing individual and class plaintiffs. The agreement is conditioned on a resolution of the claims of the insurance companies that have paid claims for property loss and other damages, with no additional payments from defendants. Under the terms of the agreement, the individual plaintiffs and insurers have 90 days to reach an agreement on the allocation of the settlement amount between those groups, or have a judge decide that the insurersʻ exclusive remedy is to seek to recover from the settlement payments made to each of the plaintiffs, among other terms. Once a final settlement agreement is signed, it will take effect following judicial review and approval. The payments would begin after such approval and are expected to be made no earlier than mid-2025.
Financing Update
With the agreement in principle now in place, HEI is moving forward with clarity on the scope of its liabilities related to the Maui wildfire tort litigation. HEI and Hawaiian Electric are working closely with their financial advisors to develop a financing plan for their settlement contribution and intend to finance the settlement payments through a mix of debt, common equity, equity-linked securities, or other potential options, although there can be no assurance at this time as to the availability or terms of any such financing.
HEI will further discuss the settlement in its quarterly earnings call scheduled for Friday, August 9.
ABOUT HEI
The HEI family of companies provides the energy and financial services that empower much of the economic and community activity of Hawai'i. HEI’s electric utility, Hawaiian Electric, supplies power to approximately 95% of Hawai'i’s population and is undertaking an ambitious effort to decarbonize its operations and the broader state economy. Its banking subsidiary, American Savings Bank, is one of Hawai'i’s largest financial institutions, providing a wide array of banking and other financial services and working to advance economic growth, affordability and financial wellness. HEI also helps advance Hawai'i’s sustainability goals through investments by its non-regulated subsidiary, Pacific Current. For more information, visit www.hei.com .
Forward-Looking Statements
This statement may contain “forward-looking statements,” which include statements that are predictive in nature, depend upon or refer to future events or conditions, and usually include words such as “will,” “expects,” “anticipates,” “intends,” “plans,” “believes,” “predicts,” “estimates” or similar expressions. In addition, any statements concerning future financial performance, ongoing business strategies or prospects or possible future actions are also forward-looking statements. Forward-looking statements are based on current expectations and projections about future events and are subject to risks, uncertainties and the accuracy of assumptions concerning HEI, Hawaiian Electric and their subsidiaries, the performance of the industries in which they do business and economic, political and market factors, among other things. These forward-looking statements are not guarantees of future performance.
Forward-looking statements in this statement should be read in conjunction with the “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors” discussions (which are incorporated by reference herein) set forth in HEI’s Annual Report on Form 10-K for the year ended December 31, 2023 and HEI’s other periodic reports that discuss important factors that could cause HEI’s results to differ materially from those anticipated in such statements. These forward-looking statements speak only as of the date of the report, presentation or filing in which they are made. Except to the extent required by the federal securities laws, HEI, Hawaiian Electric and their subsidiaries undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
* * * * *
GOVERNOR GREEN ANNOUNCES $4 BILLION GLOBAL SETTLEMENT IN PRINCIPLE TO RESOLVE MAUI WILDFIRE LAWSUITS
News Release from Office of the Governor, August 2, 2024
HONOLULU – Today, Governor Josh Green, M.D., announced a historic settlement to resolve all tort claims arising from the Maui wildfires. Less than a year after devastating wildfires on Maui, the seven defendants – state of Hawai‘i, County of Maui, Hawaiian Electric, Kamehameha Schools, West Maui Land Co., Hawaiian Telcom and Spectrum/Charter Communications – undertook significant efforts to find a resolution that addresses the needs and ensures the well-being of plaintiffs, all affected individuals, and their families.
Under the proposed terms of the global settlement agreement, which remains subject to final documentation and court approval, the seven defendants will pay $4.037 billion to provide compensation to all those who have brought claims for compensation arising from the Aug. 8, 2023 windstorms and wildfires on Maui, including the approximately 2,200 affected parties who filed lawsuits. The state of Hawaiʻi would contribute to the settlement in addition to its $65 million contribution to the One ʻOhana Fund.
Governor Green emphasized the complexity and vast considerations involved in the negotiations, stating, “This Global Settlement of over $4 billion will help our people heal. My priority as Governor was to expedite the agreement and to avoid protracted and painful lawsuits so as many resources as possible would go to those affected by the wildfires as quickly as possible. Settling a matter like this within a year is unprecedented, and it will be good that our people don’t have to wait to rebuild their lives as long as others have in many places that have suffered similar tragedies.”
The settlement agreement was reached after more than four months of mediation. Civil cases involving deadly and damaging wildfires in other states typically take years to adjudicate, according to attorneys familiar with wildfire litigation. The settlement resolves the approximately 450 lawsuits filed by individuals, businesses, and insurance companies in state and federal courts for fires in Lahaina and Upcountry Maui.
“I’d like to acknowledge the work of our expert mediators and mahalo every party to the settlement for putting Hawaiʻi’s recovery and healing above personal or other interests. In the coming weeks, we’ll provide a detailed account of the numbers and costs and when resources will become available to survivors and their families. Overall, the total scope of the recovery, which includes past insurance claims, county, federal and state support, will approach $12 billion,” said Governor Green.
Currently, the proposed settlement is an agreement in principle. The agreement is conditional on the resolution of the insurance companies’ claims that have already been paid for property loss and other damages, with no additional payments from the defendants.
Once a final settlement agreement is signed, it will take effect following judicial review and approval. The contribution to the settlement from the state of Hawaiʻi must be approved by the Hawaiʻi State Legislature. The payments would begin after such approval and are expected to start by mid-2025.
“This was an extraordinary and unprecedented effort by many people to address the tragic impacts of the wildfires in less than a year,” Governor Green continued. “Resolving this so quickly shows how Hawai‘i is different, how we come together in times of crisis to heal together as a community.”
# # #
B: Hawaiian Electric Settles Fire Claims as Part of $4 Billion Deal - Bloomberg
NYT: Hawaiian Electric is expected to pay the largest share — nearly $2 billion — but avoided a heftier price tag that could have forced the utility into bankruptcy.
Alpha: Hawaiian Electric, others reach $4B settlement with Maui wildfire plaintiffs (NYSE:HE) | Seeking Alpha
CNN: Plaintiffs in Maui wildfire case reach $4 billion settlement against Hawaiian Electric and others | CNN Business
HTH: Green announces $4 billion settlement to resolve Maui wildfire lawsuits - Hawaii Tribune-Herald
SA: Maui victims reach $4B global settlement after wildfires | Honolulu Star-Advertiser (staradvertiser.com)