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Hawaiian Telcom Files Plan of Reorganization and Disclosure Statement

HONOLULU - (BUSINESS WIRE) - Hawaiian Telcom Communications, Inc. and certain affiliates (collectively, the "Company" ) today announced the filing of their Plan of Reorganization (the "Plan" ) and related Disclosure Statement (the "Disclosure Statement" ) with the U.S. Bankruptcy Court for the District of Hawaii.

A hearing to consider approval of the Disclosure Statement has been tentatively scheduled for July 23, 2009.

The Company also announced that the Plan filed today is supported by the steering committee for holders of claims under the Company's secured credit agreement.

"The filing of the Plan and Disclosure Statement is an important achievement in our restructuring efforts," said Eric K. Yeaman, Hawaiian Telcom's president and chief executive officer. "The Plan provides for a significantly deleveraged capital structure, and the terms of the new debt give us greater financial flexibility to execute our business plan and invest in new products, better positioning the Company for future success."

Key provisions of the Company's Plan include:

• Conversion of approximately $590 million of the Company's senior secured credit facility and swap liabilities into the new equity of the reorganized Company and a new $300 million senior secured term loan maturing in five years.
• Holders of Senior Notes of approximately $350 million will receive warrants to acquire 12.75 percent of the new equity of the reorganized Company and subscription rights to purchase new equity in the amount up to $50 million.
• Existing 12.5% Senior Subordinated Notes of approximately $150 million and existing common shares will be cancelled.
• The Company anticipates at emergence it will have a $30 million undrawn revolving credit facility and, after distributions pursuant to the Plan, at least $45 million of cash on hand.
• Cash distributions to holders of allowed general unsecured claims.

"The restructuring process has been challenging, but our employees have remained dedicated to providing our customers with the highest quality service as we worked diligently through negotiations to present this Plan to the Court today," Yeaman said. "I am proud of our employees for their efforts, but there still remains work to be done to ensure our customers continue to receive uninterrupted service and the restructuring is a success. I would also like to thank the local community for their continued support, which is important to our Company's success."

The Plan will become effective only upon approval of the Bankruptcy Court and obtaining requisite regulatory approvals.

The Disclosure Statement includes a historical profile of the Company, an overview of the restructuring events and other information about the Company, a description of distributions to creditors and an analysis of the Plan's feasibility, as well as many of the technical matters required prior to exiting from Chapter 11, such as descriptions of who will be eligible to vote on the Plan and the voting process.

Copies of the Plan and Disclosure Statement materials can be found at www.hawaiiantel.com/restructuring.

Hawaiian Telcom Communications, Inc. and certain affiliates filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code on December 1, 2008. The case number is 08-02005. Customers, employees and other interested parties are encouraged to visit the Company website at www.hawaiiantel.com/restructuring for updates and additional information.

Forward-Looking Statements

This press release, as well as other statements made by Hawaiian Telcom may contain forward-looking statements within the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 that reflect, when made, the Company's current views with respect to current events and financial performance. Such forward-looking statements are and will be, as the case may be, subject to many risks, uncertainties and factors relating to the Company's operations and business environment, which may cause the actual results of the Company to be materially different from any future results, express or implied, by such forward-looking statements. Factors that could cause actual results to differ materially from these forward-looking statements include, but are not limited to, the following: (i) the ability of the Company to continue as a going concern; (ii) the Company's ability to obtain court approval with respect to motions in the Chapter 11 case prosecuted by it from time to time; (iii) the ability of the Company to develop, prosecute, confirm and consummate one or more plans of reorganization with respect to the Chapter 11 cases; (iv) risks associated with third parties seeking and obtaining court approval to terminate or shorten the exclusivity period for the Company to propose and confirm one or more plans of reorganization; (v) the ability of the Company to obtain and maintain normal terms with vendors and service providers; (vi) the Company's ability to maintain contracts and leases that are critical to its operations; (vii) the potential adverse impact of the Chapter 11 cases on the Company's liquidity or results of operations; (viii) the ability of the Company to execute its business plans and strategy, including the operational restructuring initially announced in 2008, and to do so in a timely fashion; (ix) the ability of the Company to attract, motivate and/or retain key executives and associates; and (x) general economic or business conditions affecting the telecommunications industry being less favorable than expected. Other risk factors are listed from time to time in the Company's United States Securities and Exchange Commission reports, including but not limited to the Annual Report on Form 10-K for the year ended December 31, 2007. Hawaiian Telcom disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events and/or otherwise.

About Hawaiian Telcom

Hawaiian Telcom is the state's leading telecommunications provider, offering a wide spectrum of telecommunications products and services, which include local and long distance service, managed services, high-speed Internet, and wireless services.

Hawaiian Telcom
Brian Tanner, 808-546-3442 (Investors & Media)