Carlyle-backed Hawaiian Telecom files bankruptcy

The largest telephone carrier in Hawaii cited a heavy debt load, increased competition and market turmoil as reasons to seek protection under Chapter 11 while it restructures its business.

The Carlyle Group-backed Hawaiian Telecom Communications, the largest telephone carrier in Hawaii, has stumbled into bankruptcy under a heavy debt load amassed when the global buyout firm acquired the company in 2005.

Carlyle bought the telecom company for $1.6 billion, using $425 million of equity in the transaction and funding the rest of the deal with debt.