KAPALUA RESORT, Hawaii--(BUSINESS WIRE)--Maui Land & Pineapple Company, Inc. (NYSE:MLP) is pleased to report that it has closed the sale of a 244-acre property to the State of Hawaii for $19.8 million. The property, commonly known as Lipoa Point, is located in West Maui bordering Honolua Bay.
The sale resulted from a bill enacted by the State of Hawaii in June 2013 directing the State’s Department of Land and Natural Resources (DLNR) to engage in the purchase of Lipoa Point, with the stipulation that the proceeds from the sale be designated for the benefit of MLP’s pension plans. The property had been previously pledged to the Pension Benefit Guaranty Corporation (PBGC) as security for the Company’s pension plans, which are underfunded by approximately $20 million.
“Today marks the culmination of a unique and extraordinary opportunity to preserve one of Maui’s most treasured natural resources, while at the same time securing the hard-earned pensions of our 1,600 retirees,” stated Warren H. Haruki, Chairman and CEO. “For our shareholders, it resolves one of our most significant legacy commitments and long-term financial obligations.”
“This transaction is in the best interests of all of the stakeholders, is a great example of a successful public-private partnership, and is a win-win for all. We are extremely grateful for the support and collaborative efforts of the State, Maui County, DLNR, Hawaiian Islands Land Trust, ILWU, PBGC, our pensioners and the community in making it happen.”
About Maui Land & Pineapple Company, Inc.
Maui Land & Pineapple Company, Inc. develops, sells, and manages residential, resort, commercial, and industrial real estate. The Company owns approximately 23,000 acres of land on Maui and manages properties, utilities, and a nature preserve at the Kapalua Resort.
