Pacific Business News - Maui Land & Pineapple Co. said the company's financial challenges are raising a "substantial doubt about the company's ability to continue as a going concern."
The Maui News reports Maui Land & Pineapple said in a filing with the U.S. Securities & Exchange Commission that the company's cash outlay over the next year is dependent on the sale of certain real estate assets, and that the company may have difficulty paying its outstanding debts.
The newspaper reports the filing also disclosed that a group of lenders has declared in default a $280.5 million loan for Kapalua Bay Holdings' construction of the The Ritz-Carlton Club and Residences, Kapalua Bay. The newspaper reports that ML&P, which owns 51 percent of Kapalua Bay Holdings, has invested more than $50 million in cash and $25 million in land for the development project.
According to the report, despite the outlook, Maui Land & Pineapple Chief Financial Officer Tim Esaki said company officials "remain optimistic."
Last week, Kahului-based Maui Land & Pineapple reported a $244,000 loss for the first quarter.