AIRLINES

From Times Staff and Wire Reports

Hawaiian Air's Financing Being Restructured: Hawaiian Airlines' parent company plans to eliminate debt and slice operating costs under a deal involving its main lender, shareholders, employee unions and aircraft lessors. HAL Inc. will hand over 13% of its common stock and $22 million to Bank of America, which will forgive $80 million in debt, HAL Chairman and Chief Executive John Ueberroth said. The bank will also cancel $55 million in preferred stock along with a warrant to buy 8% of HAL's common stock. Northwest Airlines agreed to return 504,742 common shares and 600,000 preferred shares at no cost, relinquishing its 22.6% interest in HAL and its option to increase its stake to 49%. Northwest did not explain why it gave up the stock.

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