Hawaiian Electric raises going concern risk over Maui wildfire settlement financing
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Hawaiian Electric raised a going concern risk in its quarterly earnings report on Friday after it disclosed that it doesn't currently have a financing plan in place yet for the $1.99 billion Maui wildfire settlement it reached earlier this month.
The utility company and its parent, Hawaiian Electric Industries, said they're working closely with financial advisers to develop a financing plan for their share of a broader $4 billion settlement reached with victims of the deadly Maui wildfires that killed more than 100 people a year ago on Aug. 8.
«HEI and Hawaiian Electric do not yet have a financing plan in place to address the future payment of the $1.71 billion Maui windstorm and wildfire settlement accrued in the second quarter of 2024,» the company wrote in a release.
«Until a definitive financing plan is developed and is probable of being implemented, HEI and Hawaiian Electric will disclose a 'going concern' risk in their financial statements. This risk is the result of estimated payments under the settlement agreement,» the utility explained.
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The 2023 Maui wildfires devastated the historic town of Lahaina, killing 102 people. (Mario Tama / Getty Images)
The company said it intends to develop a financing plan that funds settlement payments through a mix of debt, common equity, equity-linked securities or other potential options.
However, it notes «there can be no assurance at this time as to the availability or terms of any such financing.»
HEI suspended its dividend in connection with its going concern
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