Hawaii Air Ambulance Inc., predecessor of Hawaii Life Flight, filed for bankruptcy following a lengthy battle with a former whistleblower employee, The Honolulu Star-Advertiser reported yesterday. The air medical transport company, which flew critically ill and injured patients between the islands until it merged in 2010 with AirMed Hawaii, listed former employee James P. Stone as one of two creditors. Stone was awarded $760,680 last year by the Hawaii Labor Relations Board for being wrongfully terminated in 2010 after complaining that his employer did not follow state and federal requirements when refueling planes, among other safety issues. The decision was affirmed by the First Circuit Court. An appeal by Hawaii Life Flight was dismissed in May by the Intermediate Court of Appeals, and the company has filed a second appeal. The bankruptcy was filed in the middle of the appeals process, essentially preventing the court from moving ahead with the case. The company listed assets of up to $50,000 and liabilities of $1 million to $10 million and estimates there will be no funds available to unsecured creditors after the bankruptcy.
