HEI Provides Update Following Global Settlement in Maui Wildfire Tort Litigation
Hawaiian Electric Industries (NYSE: HE) and its subsidiary, Hawaiian Electric Company, have reached a $4 billion settlement agreement with multiple parties to resolve all tort claims related to the August 2023 Maui wildfires. HEI and Hawaiian Electric's contribution is $1.99 billion, to be paid in four installments. The settlement, which requires final documentation and court approval, includes no admission of liability.
The agreement involves the State of Hawaiʻi, County of Maui, Kamehameha Schools, West Maui Land Co., Hawaiian Telcom, and Spectrum/Charter Communications. It aims to resolve claims among defendants and with individual and class plaintiffs. The settlement is conditional on resolving insurance company claims without additional payments from defendants.
HEI is developing a financing plan for the settlement, considering a mix of debt, common equity, and equity-linked securities. Payments are expected to begin no earlier than mid-2025, pending judicial approval.
Hawaiian Electric Industries (NYSE: HE) e la sua controllata, Hawaiian Electric Company, hanno raggiunto un accordo di risarcimento di $4 miliardi con più parti per risolvere tutte le richieste di risarcimento relative agli incendi di Maui dell'agosto 2023. Il contributo di HEI e Hawaiian Electric è di $1,99 miliardi, da pagare in quattro rate. L'accordo, che richiede documentazione finale e approvazione del tribunale, non comporta ammissioni di responsabilità.
L'accordo coinvolge lo Stato delle Hawaiʻi, la Contea di Maui, le Kamehameha Schools, la West Maui Land Co., Hawaiian Telcom e Spectrum/Charter Communications. Mira a risolvere le rivendicazioni tra gli imputati e con i querelanti individuali e collettivi. L’accordo è condizionato alla risoluzione delle richieste delle compagnie di assicurazione senza ulteriori pagamenti da parte degli imputati.
HEI sta sviluppando un piano di finanziamento per l'accordo, considerando una combinazione di debito, azioni ordinarie e titoli legati al capitale. I pagamenti dovrebbero iniziare non prima della metà del 2025, in attesa dell'approvazione giudiziaria.
Hawaiian Electric Industries (NYSE: HE) y su subsidiaria, Hawaiian Electric Company, han alcanzado un acuerdo de compensación de $4 mil millones con múltiples partes para resolver todas las reclamaciones por daños relacionadas con los incendios forestales de Maui en agosto de 2023. La contribución de HEI y Hawaiian Electric es de $1.99 mil millones, que se pagará en cuatro cuotas. El acuerdo, que requiere documentación final y aprobación judicial, no incluye admisión de responsabilidad.
El acuerdo involucra al Estado de Hawaiʻi, al Condado de Maui, a las Kamehameha Schools, a West Maui Land Co., a Hawaiian Telcom y a Spectrum/Charter Communications. Tiene como objetivo resolver las reclamaciones entre los demandados y con los demandantes individuales y colectivos. El acuerdo es condicional a resolver las reclamaciones de las compañías de seguros sin pagos adicionales por parte de los demandados.
HEI está desarrollando un plan de financiamiento para el acuerdo, considerando una mezcla de deuda, capital común y valores vinculados al capital. Se espera que los pagos comiencen no antes de mediados de 2025, a la espera de la aprobación judicial.
하와이 전기 산업(Hawaiian Electric Industries, NYSE: HE)과 그 자회사인 하와이 전기 회사(Hawaiian Electric Company)는 2023년 8월 마우이 산불과 관련된 모든 불법행위 청구를 해결하기 위해 여러 당사자와 40억 달러의 합의 계약에 도달했습니다. HEI와 하와이 전기의 기여 금액은 19억 9천만 달러로, 네 번에 걸쳐 지급될 예정입니다. 이 합의는 최종 문서화 및 법원 승인이 필요하며, 책임을 인정하지 않는 내용입니다.
이 합의에는 하와이 주, 마우이 카운티, 카메하메하 학교, 웨스트 마우이 랜드 컴퍼니, 하와이안 텔컴, 스펙트럼/차터 커뮤니케이션이 포함됩니다. 이는 피고 간 및 개별 및 집단 원고와의 청구를 해결하는 것을 목표로 합니다. 이 합의는 피고로부터 추가 지급 없이 보험 회사의 청구를 해결하는 데 조건이 설정되어 있습니다.
HEI는 합의를 위한 금융 계획을 개발하고 있으며, 부채, 일반 주식 및 주식 연계 증권의 혼합을 고려하고 있습니다. 지급은 2025년 중반 이후에 시작될 것으로 예상되며, 사법 승인을 기다리고 있습니다.
Hawaiian Electric Industries (NYSE: HE) et sa filiale, Hawaiian Electric Company, ont atteint un accord de règlement de 4 milliards de dollars avec plusieurs parties pour résoudre toutes les réclamations en responsabilité délictuelle liées aux incendies de forêt de Maui en août 2023. La contribution de HEI et de Hawaiian Electric s'élève à 1,99 milliard de dollars, qui sera versé en quatre versements. Le règlement, qui nécessite une documentation finale et l'approbation du tribunal, n'inclut aucune admission de responsabilité.
l'accord implique l'État d'Hawaï, le comté de Maui, les écoles Kamehameha, la West Maui Land Co., Hawaiian Telcom et Spectrum/Charter Communications. Il vise à résoudre les réclamations entre les défendeurs et avec les plaignants individuels et collectifs. Le règlement est conditionné à la résolution des demandes des compagnies d'assurance sans paiements complémentaires de la part des défendeurs.
HEI élabore un plan de financement pour le règlement, en considérant un mélange de dettes, d'actions ordinaires et de titres liés aux capitaux propres. Les paiements devraient commencer au plus tôt à la mi-2025, en attendant l'approbation judiciaire.
Hawaiian Electric Industries (NYSE: HE) und ihre Tochtergesellschaft, Hawaiian Electric Company, haben eine Vergleichsvereinbarung über 4 Milliarden Dollar mit mehreren Parteien erzielt, um alle Schadensersatzansprüche im Zusammenhang mit den Waldbränden auf Maui im August 2023 zu klären. Der Beitrag von HEI und Hawaiian Electric beträgt 1,99 Milliarden Dollar, die in vier Raten gezahlt werden. Die Vereinbarung, die eine finale Dokumentation und die Genehmigung des Gerichts erfordert, beinhaltet kein Schuldeingeständnis.
Die Vereinbarung umfasst den Staat Hawaiʻi, den Landkreis Maui, die Kamehameha Schools, die West Maui Land Co., Hawaiian Telcom und Spectrum/Charter Communications. Sie zielt darauf ab, Ansprüche zwischen den Beklagten und mit einzelnen und kollektiven Klägern zu lösen. Der Vergleich ist davon abhängig, dass die Ansprüche der Versicherungsunternehmen ohne zusätzliche Zahlungen von den Beklagten geklärt werden.
HEI entwickelt einen Finanzierungsplan für den Vergleich und erwägt eine Mischung aus Schulden, Stammaktien und eigenkapitalbezogenen Wertpapieren. Die Zahlungen werden voraussichtlich frühestens Mitte 2025 beginnen, vorbehaltlich der gerichtlichen Genehmigung.
- Agreement reached to settle all Maui wildfire tort claims, providing clarity on liabilities
- Settlement amount of $1.99 billion is less than half of the total $4 billion agreement
- Payment structure spread over four installments, easing immediate financial burden
- No admission of liability in the settlement agreement
- Significant financial obligation of $1.99 billion for HEI and Hawaiian Electric
- Potential dilution of shareholder value due to planned equity and equity-linked securities issuance
- Increased debt load expected as part of the financing plan
- Settlement payments not expected to begin until mid-2025, prolonging financial uncertainty
Insights
This settlement is a significant financial event for HEI and Hawaiian Electric. The
The planned financing through a mix of debt, equity and equity-linked securities suggests a dilutive effect on existing shareholders. This could pressure the stock price in the short term but may be necessary for long-term stability. The phased payment structure over four installments provides some flexibility in managing cash flows.
Investors should closely monitor the company's ability to secure favorable financing terms and maintain its financial health while meeting these obligations. The settlement's impact on future earnings, dividend policy and credit ratings will be critical factors to watch.
This settlement marks a significant legal milestone in resolving the complex Maui wildfire litigation. By reaching an agreement without admitting liability, HEI and Hawaiian Electric have effectively mitigated long-term legal risks and potentially avoided more costly outcomes from protracted litigation.
The 90-day window for individual plaintiffs and insurers to agree on allocation is a important phase. If unresolved, judicial intervention could introduce additional uncertainty. The requirement for court approval adds another layer of scrutiny, but generally, courts favor such comprehensive settlements.
This agreement sets a precedent for future disaster-related settlements in the utility sector. It demonstrates a proactive approach to resolving complex multi-party litigation, potentially influencing how other utilities manage similar risks and liabilities in the future.
This settlement could have broader implications for the utility sector. It sets a benchmark for financial liability in disaster-related incidents, potentially influencing how investors assess risk in utility stocks, especially those operating in disaster-prone areas.
The market's reaction will likely be mixed. While the settlement removes uncertainty, the financial burden and potential dilution may concern some investors. However, the agreement's structure, allowing for phased payments and flexible financing, could be viewed positively.
Long-term, this event may accelerate the trend towards increased investment in infrastructure resilience and disaster prevention among utilities. Companies may prioritize risk mitigation strategies to avoid similar liabilities, potentially leading to increased capital expenditures across the sector.
HEI and Hawaiian Electric, the State of Hawaiʻi, the County of
Scott Seu, President and CEO of HEI, stated, “One of our core values in Hawaiʻi is the concept of laulima, which means many hands working together. Our Board and management are pleased to have reached this agreement in principle on an expedited basis, which embodies the spirit of this concept as we come together on a path forward. Not only is this good for our community, but we are confident that this settlement represents the best outcome for HEI, as it provides a clear line of sight toward resolution of the wildfire-related tort litigation and increased certainty for our company’s path ahead. In the coming months, we will be focused on finalizing the agreement and regaining the strength of our enterprise.”
Settlement Details
The settlement terms were reached after four months of mediation between the defendants and attorneys representing plaintiffs from
Financing Update
With the agreement in principle now in place, HEI is moving forward with clarity on the scope of its liabilities related to the
HEI will further discuss the settlement in its quarterly earnings call scheduled for Friday, August 9.
ABOUT HEI
The HEI family of companies provides the energy and financial services that empower much of the economic and community activity of Hawai'i. HEI’s electric utility, Hawaiian Electric, supplies power to approximately
Forward-Looking Statements
This statement may contain “forward-looking statements,” which include statements that are predictive in nature, depend upon or refer to future events or conditions, and usually include words such as “will,” “expects,” “anticipates,” “intends,” “plans,” “believes,” “predicts,” “estimates” or similar expressions. In addition, any statements concerning future financial performance, ongoing business strategies or prospects or possible future actions are also forward-looking statements. Forward-looking statements are based on current expectations and projections about future events and are subject to risks, uncertainties and the accuracy of assumptions concerning HEI, Hawaiian Electric and their subsidiaries, the performance of the industries in which they do business and economic, political and market factors, among other things. These forward-looking statements are not guarantees of future performance.
Forward-looking statements in this statement should be read in conjunction with the “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors” discussions (which are incorporated by reference herein) set forth in HEI’s Annual Report on Form 10-K for the year ended December 31, 2023 and HEI’s other periodic reports that discuss important factors that could cause HEI’s results to differ materially from those anticipated in such statements. These forward-looking statements speak only as of the date of the report, presentation or filing in which they are made. Except to the extent required by the federal securities laws, HEI, Hawaiian Electric and their subsidiaries undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240802834122/en/
Investor Contact
Mateo Garcia
Director, Investor Relations
ir@hei.com
(808) 543-7300
Media Contact
Julie Smolinski
VP, Strategy & Corporate Sustainability
media@hei.com
(808) 543-5874
Source: Hawaiian Electric Industries, Inc.
FAQ
What is the total settlement amount for the Maui wildfire claims involving Hawaiian Electric (HE)?
When will Hawaiian Electric (HE) begin making settlement payments for the Maui wildfire claims?
How does Hawaiian Electric (HE) plan to finance its $1.99 billion settlement contribution?
Does the settlement agreement for Hawaiian Electric (HE) include an admission of liability for the Maui wildfires?
