Hawaiian Airlines has agreed to purchase the Island Air operating certificate and other assets. If approved, the case will be converted back to Chapter 11 reorganization with HAL acquiring shares in what would essentially be a new shell company.
Hawaiian hasn't yet stated (announcement expected "shortly") on what Hawaiian intends to do with the certificate; my guess is that they will move the Ohana operation in-house under the Island Air certificate, rather than continuing to contract out the operation to Empire. IIRC Hawaiian owns the Ohana ATRs.
Star-Advertiser link (possible paywall):
Hawaiian Airlines? parent to buy bankrupt Island Air?s assets for $750,000