VIDEO: Report Shows Doubt Over Future ML&P OperationsDecember 30, 2009, 10:57 AM HST · Updated December 30, 2:47 PM 0 Comments
By Wendy Osher
A report filed Monday with the U.S. Securities and Exchange Commission shows doubts over future operations at Maui Land & Pineapple Company.
The document detailed uncertainties in the companyâ€™s ability to continue after ceasing pineapple planting last week and laying off 208 employees by tomorrow, New Yearâ€™s Eve.
The audit also pointed to recurring losses and negative cash flow as reasons for its doubts.
But the company has made efforts to generate cash flow and find financial stability. The report notes actions include the $50 million sale of the Plantation Golf Course in March, and the companyâ€™s move to restructure its lines of credit and reduce expenses.
A Beyond that, there are plans to sell off some real estate assets and extend the maturity dates of loan agreements beyond 2010.
As a result of these actions, the company believes it will be able to continue to be in compliance with its borrowing arrangements.
According to a financial statement summary included in the report, the Company incurred an operating loss of $71.6 million and negative cash flow from operations of $51.8 million for the year ended December 31, 2008. As of March 30, 2009, ML&P had borrowings of almost $100 million outstanding and approximately $11.7 million available under existing lines of credit.