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Hawaiian Electric The company said it still had no plans to raise funds for the $1.99 billion Maui wildfire settlement it agreed to earlier this month, and cited going concern risks in its quarterly earnings report on Friday.
The utility and its parent company, Hawaiian Electric Industries, said they were working closely with financial advisers to develop a financing plan to cover their share of the $4 billion settlement reached with victims of the nuclear disaster. Deadly wildfires on Maui More than 100 people died on August 8th a year ago.
“HEI and Hawaiian Electric have not yet developed financing plans to address future payments of $1.71 billion in Maui storm and wildfire settlement payments in the second quarter of 2024,” the company said in a statement.
“Until a definitive financing plan has been developed and is expected to be implemented, HEI and Hawaiian Electric will disclose ‘going concern’ risks in their financial statements as a result of estimated payments under the settlement agreement,” the company explained.
Maui sees big drop in tourism one year after devastating wildfires
The 2023 Maui wildfires devastated the historic town of Lahaina and killed 102 people. (Mario Tama/Getty Images)
The company: Funding Plan It will fund the settlement payments through a combination of debt, common stock, equity-linked securities, or other potential options.
However, it noted that “at this time, we cannot assure you whether such financing will be available or what the terms will be.”
| Ticker | safety | last | change | change % |
|---|---|---|---|---|
| he | Hawaiian Electric Industries, Inc. | 15.53 | -0.45 |
-2.82% |
HEI has suspended its dividend on a going concern basis, and the company believes it has “sufficient liquidity as the parties work toward entering into an agreement in principle to resolve tort claims related to the Maui wildfires.”
Deadly Maui wildfires cause billions of dollars of damage to Hawaii’s economy
People gather at a public hillside memorial honoring the victims of the Lahaina Wildfire on August 7, 2024 in Lahaina, Hawaii. (Mario Tama/Getty Images)
Hawaiian Electric’s total contribution to the settlement is $1.99 billion before taxes, including $75 million the company previously contributed. One Ohana InitiativeThe settlement will be paid in four installments.
HEI President and CEO Scott Su said on the company’s most recent earnings call that the settlement “will allow all parties to move forward together.”
“We are confident that this settlement is the best outcome for HEI and provides a clearer outlook for resolving the issues,” Seow added. Wildfire-related tort litigation And it gives us even more confidence in our future path.”
An aerial view of the Lahaina area of Maui, devastated by the August 2023 wildfires. (Justin Sullivan/Getty Images)
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The company previously said settlement payments were expected to begin in mid-2025, subject to judicial review and approval. Hawaiian Electric and the other defendants in the settlement did not admit any liability under the terms of the agreement.
Hawaiian Electric did not immediately respond to a request for comment outside regular business hours.
Reuters contributed to this report.
