The company said in a regulatory filing that it would suspend the 36-cent per share cash dividend in the third quarter. It’s contractually obligated to pay a dividend it declared Aug. 3, before the wildfires.
On Wednesday, Hawaiian Electric Industries and its Hawaiian Electric unit drew $170 million and $200 million, respectively, on revolving credit lines. It will use the proceeds to invest “in highly liquid short-term investments,” according to the filing. Three independent directors who served on the board of Hawaiian Electric Industries and American Savings Bank, which is owned by the utility, will serve exclusively on the bank’s board, which “enables these directors to focus solely on the bank’s business.” The company said customer deposits at the bank aren’t at risk from legal claims tied to the fires.
Numerous lawsuits have been filed alleging that the utility’s power lines ignited the fires which destroyed much of Lahaina, on the island on Maui, earlier this month. The potential liabilities could reach almost $4 billion if the utility is deemed negligent, according to investment research firm Capstone LLC.