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Acting U.S. Trustee Tiffany Carroll has moved to dismiss the Chapter 11 bankruptcy petition filed by Honey Bee USA, the floundering developer of a wedding chapel and boat-repair facility at the the Ala Wai Small Boat Harbor.
The motion is slated to be heard at 2 p.m. on Aug. 8 by U.S. Bankruptcy Judge Robert Faris. The trustee said in a July 13 filing that Honey Bee “has suffered and continues to suffer losses and lacks a reasonable likelihood of rehabilitation.”
Honey Bee, led by principal Keith Kiuchi, filed for bankruptcy in November, circumventing the state’s decision to pull the lease that allowed it to develop the Waikiki Landing on state lands. The state recommended lease termination after Kiuchi fell significantly behind in back rent and failed to produce a viable financing plan after the project’s majority investor pulled out. As of April, the state claimed that the debtor owned more than $950,000 in unpaid rent, fees and interest.
The trustee’s recommendation follows Faris’ June 9 decision to deny Kiuchi’s motion to obtain post-petition financing and approve lease assumption. Honey Bee’s motion to reconsider is slated to be heard Aug. 1 at 2 p.m.
Kiuchi said he’s ready to present a viable development plan that hinges on support from Xymax, a Japanese corporation.
“I’m trying to keep this thing alive. If reconsideration isn’t granted, we’ll just dismiss the case. There’s no sense in converting to Chapter 7 because Honey Bee doesn’t have any money. Its assets are permits and entitlements,” Kiuchi said.
The state and its Division of Boating and Ocean Recreation filed paperwork Monday asking the judge to order Honey Bee to return the state’s property to it during the Aug. 1 hearing. The state is worried about safety when Hawaiian Dredging removes its barriers and fencing next month.
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