A company headed by local producer Roy Tokujo has filed for bankruptcy to protect showroom operations at the Royal Hawaiian Center in Waikiki.

Royal Hawaiian Showroom LLC filed for Chapter 11 on Tuesday in part to stave off an effort by the shopping center's owner, Kamehameha Schools, to take over the showroom space it leases to the production company.

Tokujo's company, which produced the much-hyped but short-lived show "Waikiki Nei" last year, also was in default on debts with lender Central Pacific Bank and under pressure from other creditors.

A theatrical show, "Heartbeat Hawaii," and the Level 4 nightclub, which currently operate in the showroom, will continue in business and aren't affected by the bankruptcy, according to Jerrold Guben, a local bankruptcy attorney representing Royal Hawaiian Showroom.

The debtor reported owing its 20 largest creditors about $12.4 million, including $5.6 million to Central Pacific.

The next largest claim is $4.6 million by Taisei Construction Co., which wasn't paid for some work improving the 750-seat theater for Royal Hawaiian Showroom, which invested an estimated $20 million to convert the space for "Waikiki Nei" and Level 4.

After repeated delays, "Waikiki Nei" — a big-budget, Las Vegas-style production filled with music, dance and technological gadgetry — opened in August 2008 to encouraging reviews.

However, the show built around Hawai'i's history was abruptly canceled after two months for a variety of reasons, including low ticket sales. An initial plan to revamp the show was canceled, and the space on the shopping center's fourth floor was made available for short-term local bookings that didn't interfere with continued late-night operation of Level 4.

In June, a Denver-based production company partnered with Royal Hawaiian Showroom to open the musical show "Heartbeat Hawaii," with one nightly performance Tuesdays through Sundays.

Guben said the nightclub does well, but that there isn't enough demand to expand "Heartbeat Hawaii" to the two nightly shows that he said are needed to support expenses.

"We just need more people going through Waikiki," he said. "Like a restaurant, we're just not going to make it on just one seating."

Royal Hawaiian Center has been under extraordinary financial pressure since "Waikiki Nei" was canceled. Several contractors filed mechanics liens last year over unpaid bills related to showroom improvements.

More recently, Kamehameha Schools filed a lawsuit seeking to take back the showroom space, citing language in the lease dealing with Royal Hawaiian Showroom closing the theater. A key hearing in the case had been scheduled in about a week, but the bankruptcy filing blocks the suit from proceeding.

Kamehameha Schools wouldn't comment on the suit.

Marlene Akau, general manager of the mall managed for Kamehameha Schools by Festival Cos., said she is hopeful that the restructuring will strengthen Royal Hawaiian Showroom's financial position and help ensure that its current business operations continue uninterrupted.

Royal Hawaiian Showroom in its bankruptcy filing said its cash reserves were near zero, and that revenue from present operations isn't enough to cover continuing expenses.

Guben said part of the restructuring plan is to borrow money from a partner to help sustain operations until an anticipated pickup in tourism that would allow "Heartbeat Hawaii" to add a second nightly show.

It was unclear how much debt Royal Hawaiian Showroom seeks to discharge.

Besides Central Pacific and Taisei, other large creditors are Kamehameha Schools, owed $693,259 for lease and utility payments; and Realisations, a Canadian firm that helped develop "Waikiki Nei" and is owed $543,944.

Royal Hawaiian Showroom's largest asset is the theater lease, which it hopes to keep.

The company is seeking approval to borrow an initial $150,000 from Tokyo-based Japan Sports Marketing, which is part-owner of the production company with Tokujo. As part of the financing deal, Japan Sports intends to assume control of the lease.

Tokujo, a local show-biz veteran of nearly 50 years who has been involved with the Maui show "Ulalena" and the Paradise Cove lu'au on O'ahu, could not be reached for comment.