Hawaiian Electric said that it has begun working with investment bank Guggenheim Securities as it seeks to address difficulties arising from the Maui wildfires, WSJ Pro Bankruptcy reported. “We are seeking advice from various experts as we position HEI and Hawaiian Electric to be the strong, financially healthy local utility that the people of Maui and Hawai’i need over the long term,” a company spokesperson said. “One of those experts is Guggenheim Securities, and their deep experience working with other utilities will be invaluable as we move forward.” The Wall Street Journal reported last week that the utility was in talks with firms that specialize in restructuring advisory work after investors sold off its stock and bonds and Maui residents began filing lawsuits alleging it was negligent before and during the fires. The Journal also reported that Hawaiian Electric concluded in 2019 that it needed to do more to prevent its power lines from emitting sparks, but did little work since then to upgrade its infrastructure and equipment for fire-safety. Credit ratings agencies have downgraded Hawaiian Electric to junk status, with S&P Global Ratings last week saying the wildfires destroyed a significant segment of the company’s customer base and will take many years to restore. On Monday, Fitch Ratings said the utility’s potential liabilities from the Maui fires could be upwards of $3.8 billion, representing an existential threat to the company barring substantial regulatory or legislative support.
