HONOLULU -- Investors and officials from Hawaiian Airlines appeared in bankruptcy court Thursday in hopes of taking the company out of its financial state.

Video

WATCH REPORT

Hawaiian Airlines Pilot Robert Konop left court Thursday after a judge threw out his plan to reorganize the company under Hawaiian Investment Partners. Konop's main financier Paul Boghosian was arrested by the FBI

Wednesday as he tried to secure a loan in time for Thursday's hearing.

Boghosian now faces charges of bribery and conspiracy to commit bankruptcy fraud.

"I was shocked myself," Konop said.

Konop conceded that without funding, there is no plan.

Three of the company's attorneys withdrew from the case.

In court, the judge advised Konop to hire a lawyer and then gave him a stern warning about a Web site that posted information from a previous hearing.

"It's just plain false. I didn't say those things. It's a lie," Judge Robert Faris said.

Two years ago this month, Hawaiian filed for Chapter 11 Bankruptcy reorganization. The court-appointed trustee couldn't be happier that the end is near.

"For an airline that less than two years ago was losing money and had less than $20 million in the bank, this is a great day," Hawaiian Air trustee Joshua Gotbaum said.

Gotbaum said he is glad; the financing plan with Ranch Capitol Aviation is the only thing on the table.

He has high hopes for the company to be officially out of bankruptcy in April. The one piece that isn't in place is a formal working agreement with all of its labor unions.

Hawaiians' pilots and flight attendants have not yet ratified the tentative agreement and until that happens the judge won't sign a written confirmation order. Flight attendants are wrapped up a vote Thursday. Pilots are expected to take a ratification vote next week.

Once Hawaiian Airlines is out of bankruptcy, it hopes to expand to China as well as the Midwest and east coast of the U.S. mainland.