Hawaiian Electric, the utility provider in Maui, Hawaii, is currently under scrutiny for its alleged involvement in starting devastating wildfires. Despite seeking advice and expressing its intention to remain a financially strong utility, the market remains skeptical.
Although Hawaiian Electric has not responded to requests for comment, the company has informed Bloomberg that it is unaware of what caused the fires.
Addressing concerns surrounding the company's restructuring plans, Hawaiian Electric stated in its recent filings that it is seeking advice from various experts. This proactive measure is part of prudent scenario planning, with the goal of remaining a financially robust utility. The company clarified that it does not have any plans to restructure itself.
However, the market does not share the same sentiment. In fact, shares in Hawaiian Electric had already experienced a significant decrease in value, losing two-thirds of their worth between August 8th (when the Maui fires began) and Thursday's closing. Furthermore, the stock experienced an additional 1% decline during Friday's premarket trading.
The Wall Street Journal reported on Thursday that Hawaiian Electric is in discussions with firms specializing in restructuring advisory work. These talks aim to explore potential solutions for the company's financial and legal challenges.
In conclusion, Hawaiian Electric is navigating a difficult situation following accusations regarding its involvement in the devastating wildfires. While the company asserts its commitment to remain financially stable, the market's skepticism and declining stock value indicate a challenging road ahead.