Hilo Hattie has submitted its plan to emerge from bankruptcy in a move that would erase about $14 million in debts owed to dozens of creditors.

The plan, filed late Monday, would commit to fully repay creditors such as landlords and banks whose debts are secured by assets such as property and equipment leases, and allow the venerable retailer to continue operating its seven stores employing roughly 200 employees.
But unsecured creditors owed roughly $15 million would receive a cash payment equivalent to 5 percent of what they are owed, or a total of $750,000.
Among creditors with some of the largest unsecured claims are Royal Hawaiian Creations at $793,434; Island Import Co. at $200,291; MV Enterprises at $192,181; Roberts Hawaiçi Tours at $173,190; and This Week Publications at $172,047.
Hilo Hattie is asking a U.S. Bankruptcy Court judge to allow eligible creditors to vote on its plan. A hearing on that motion has been requested for July 13.
A committee of unsecured creditors in April petitioned the court to appoint a trustee who would presumably try to sell Hilo Hattie or liquidate the company for the benefit of creditors.
Attorneys representing the committee could not be reached for comment yesterday.
A hearing is scheduled for Monday on the committee’s motion.