{"id":7887,"date":"2010-10-15T09:11:46","date_gmt":"2010-10-15T17:41:46","guid":{"rendered":"http:\/\/www.dmzhawaii.org\/?p=7887"},"modified":"2010-10-15T09:11:46","modified_gmt":"2010-10-15T17:41:46","slug":"in-the-military-industrial-complex-hawaii-superferry%e2%80%99s-bankruptcy-us-navy-opportunity","status":"publish","type":"post","link":"https:\/\/www.dmzhawaii.org\/?p=7887","title":{"rendered":"In the military-industrial complex, “Hawaii Superferry\u2019s Bankruptcy = US Navy Opportunity”"},"content":{"rendered":"

The Defense Industry Daily<\/a> blog wrote this about the recent auction of the Hawaii Superferry ships to MARAD:<\/p>\n

Hawaii Superferry\u2019s Bankruptcy = US Navy Opportunity
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14-Oct-2010 14:04 EDT<\/p>\n

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In his April 6\/09 discussion of the FY 2010 budget<\/a>, Secretary of Defense Robert M. Gates said that the US military wanted to charter another 2 \u201cJHSV-like\u201d fast catamaran ships from 2009-2011, until the JHSV ships<\/a> begin arriving. That meant JHSV-winner Austal would find its products competing once more with Incat, which has had 4 of its wave-piercing catamarans chartered by various American services. Their Swift wave-piercing catamaran is currently chartered by the Navy<\/a> as HSV-2, just as the Austal-built Westpac Express is chartered<\/a> by US Military Sealift Command for the Marines.<\/p>\n

One obvious option was the Hawaiian Superferry catamarans, a larger pair of Austal-built ships that resemble the Westpac Express\u2026.<\/p>\n

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Oct 10\/10:<\/strong> The US Maritime Administration (MARAD) buys the 2 ferries for $25 million each at a US District Court auction in Norfolk, VA. MARAD was able to use its owed debts to cover the bid cost, and will now look to sell the ferries. The US Navy has expressed interest in buying them. Maritime Matters<\/a> | Alabama Press-Register<\/a> | Honolulu Star-Advertiser<\/a> | KITV Honolulu<\/a> | Virginia Pilot<\/a> | Gannett\u2019s Navy Times<\/a>.<\/p>\n

May 2010:<\/strong> The federal government sues to get title to the 2 vessels, in order to recoup its $150 million loan guarantees. The suit leads to the October 2010 auction.<\/p>\n

Feb 11\/10:<\/strong> The former Hawaii superferries Huakai and Alakai are pressed into service by the USA\u2019s Maritime Administration (MARAD), in the wake of the disaster in Haiti. The ships are managed by Hornblower Marine Services (HMS), and the deployment is seen as an earl concept test of the similar JHSV design\u2019s operations. Haiti\u2019s lack of port infrastructure has not, to date, been a major problem for these ships. Maritime Executive magazine<\/a>.<\/p>\n

March 30\/09:<\/strong> Hawaii Superferry files for Chapter 11 bankruptcy, as it reportedly has just $1 million in cash, and is facing a $2.9 million principal and interest payment on one of the ferry construction loans. MarineLog\u2019s \u201cHawaii Superferry files for Chapter 11<\/a>\u201d explains the situation, and details the firm\u2019s various creditors.<\/p>\n