Hawaiian Telcom

Hawaiian Telcom is a Honolulu, Hawaii-based telecoms company with $1.97 billion of outstanding debt, according to its second quarter 2008 financial statements. The firm missed its interest payment on 3 November 2008, and failed to make the payment within the 30-day grace period, which ended on 1 December 2008. Hawaiian Telcom filed for chapter 11 bankruptcy at the US bankruptcy court for the district of Delaware on 1 December 2008. Having triggered a bankruptcy credit event under its loan-only credit default swaps, a credit settlement auction on 17 December 2008 determined LCDS recoveries at 40.125%.