Linemen work on poles, Sunday, Aug. 13 in Lahaina, Hawaii.Rick Bowmer/The Associated Press
Hawaiian Electric Industries (HE-N) shares continued their record slump, briefly hitting their lowest level since 1985 in early trading on Thursday, as the utility faces increased scrutiny over whether its equipment might have played a role in the deadly Maui wildfires.
The company’s stock has lost more than half its value since the Aug. 8 wildfires that killed at least 110 people and destroyed the coastal Maui town of Lahaina.
The stock, briefly halted for volatility in early trading, pared some premarket losses and was last down about 16.5% at $11.8.
This week, Hawaiian Electric was slapped with class-action lawsuits alleging culpability for the fires as well as a downgrade from S&P Global Ratings to junk status.
The Wall Street Journal reported on Wednesday that the company is speaking with restructuring advisory firms to address its recent financial and legal challenges.
BofA Global Research said material wildfire liability risk remains for the company and the catalyst path ahead is challenging for its shares. The brokerage also cut Hawaiian Electric’s price target, joining other brokerages like Guggenheim, Wells Fargo and Morningstar.
The company, the largest supplier of electricity to Hawaii, said on Wednesday that about 2,000 customers were without power in West Maui and more than 100 utility poles were needed to restore priority services.
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