Hawaii’s Island Air, a small regional carrier that shuttles passengers across the state, filed for bankruptcy on Monday, the Wall Street Journal reported today. The airline sought chapter 11 protection in the U.S. Bankruptcy Court in Honolulu, beset by legal trouble that threatened to ground its aircraft. The company listed both total assets and liabilities as between $10 million and $50 million. Island Air was founded in 1980 as Princeville Airways, according to its website. Oracle Corp. founder Larry Ellison acquired the business in 2013 but sold a controlling stake in the airline three years later to two Honolulu-based investment funds. Island Air is seeking an emergency hearing in bankruptcy court as soon as Wednesday, court papers show, which it says is essential to ensuring its operations continue uninterrupted.
