Hawaiian Electric Industries Inc (NYSE:HE) shares are trading lower following reports the company is facing multiple lawsuits and is in talks with restructuring firms.
What Happened: Hawaiian Electric has been hit with multiple lawsuits alleging negligence over the Maui wildfires, per the Wall Street Journal.
The report indicates that the Hawaii-based utility company determined in 2019 that it needed to take further steps to prevent its power lines from emitting sparks, but leading up to the wildfires in Maui, Hawaiian Electric made little progress. Instead, the company chose to focus on a shift to clean energy.
The company has also faced criticism over failing to take appropriate safety measures and shut off power when hazardous fire conditions were first identified.
Hawaiian Electric shares are down more than 60% since the fires broke out in the island state, trading at levels not seen for several decades.
A separate Wall Street Journal report indicates the company is now in talks with firms that specialize in restructuring advisory work, as it considers options to deal with the legal troubles and financial woes.
BofA Securities analyst Julien Dumoulin-Smith maintained Hawaiian Electric with an Underperform rating on Thursday and lowered the price target from $11 to $10. The price target cut comes after the S&P downgraded Hawaiian Electric to a junk rating this week.
See Also: Biden, Under Fire Over ‘No Comment’ Remark On Rising Hawaii Death Toll, Says Will Visit Maui ‘As Soon As We Can’
HE Price Action: Hawaiian Electric shares were halted twice in early trading Thursday.
The stock was down 19.3% at $11.76 at the time of publication, according to Benzinga Pro.
Photo: The National Guard from Flickr.
