Hawaiian Electric HAWEL is reportedly in discussions with restructuring specialists due to financial and legal challenges stemming from the Maui wildfires, Wall Street Journal reports.
Hawaiian Electric faces plummeting stock and bond values and has been slapped with lawsuits accusing the company of intensifying the wildfire damage. The company is evaluating strategies and considering hiring legal and financial advisers, sources reveal. More lawsuits from customers are anticipated, further straining the company’s finances.
S&P Global Ratings downgraded Hawaiian Electric's credit rating to junk, citing the significant loss of its customer base due to the wildfires and the impending lawsuits. Lawsuits claim that the company did not shut off its power lines as Hurricane Dora neared, despite the potential risk of sparking wildfires.
Investigations into the cause of the fires are underway, with multiple potential sources being considered. The company’s stock closed at $14.57 on Wednesday, a sharp decline since the wildfires began.
Read Next: Tragedy In Paradise: Thousands Flee As Hawaii’s Maui Island Faces One Of Deadliest US Wildfires
Image Via Shutterstock
Engineered by Benzinga Neuro, Edited by Pooja Rajkumari
The GPT-4 Benzinga Neuro content generation system exploits the extensive Benzinga Ecosystem, including native data, APIs, and more to create comprehensive and timely stories for you. Learn more.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
