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Hawaiian Electric shares rebound after utility says its goal is not to restructure

Published 08/18/2023, 09:41 AM
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Investing.com -- Shares in Hawaiian Electric (NYSE:HE) surged in early U.S. trading on Friday, paring back some recent losses, after the utility said that its goal is not to restructure the company.

In a filing with the Securities and Exchange Commission, Hawaiian Electric said that while it is seeking advice from various experts, it still plans to endure as a financially strong utility that the fire-ravaged Hawaiian island of Maui needs.

The Wall Street Journal previously reported that the company is in talks with restructuring-advisory firms over the options it has to address its financial and legal hurdles.

Hawaiian Electric, the largest electricity supplier in Hawaii, has seen the price of its stock slide by more than 60% since lethal wildfires destroyed parts of Maui earlier this month. According to the Associated Press, at least 111 people were killed, making it the deadliest U.S. wildfire in more than a century.

The company now faces litigation and a financial crisis over indications that its power lines may have had a role to play in igniting the fire. Media reports say that an increasing amount of evidence suggests that the utility's equipment may have been involved, although no conclusion has yet to be reached.

The company has promised to conduct its own investigation into how its equipment may have factored into the fire, with Chief Executive Shelee Kimura saying it is "important to understand what happened" in order to "make sure it doesn't happen again." It has also said it is cooperating with a separate probe by Hawaii's attorney general.

In its most recent statement on Thursday, Hawaiian Electric said about 1,900 customers in West Maui are currently without electricity.

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