TreeCon Resources, Inc. Announces Resignation of Chairman and CEO
01 January 2004 - 6:26AM
PR Newswire (US)
TreeCon Resources, Inc. Announces Resignation of Chairman and CEO
DALLAS, Dec. 31 /PRNewswire-FirstCall/ -- TreeCon Resources, Inc.
today announced the resignation of James Rudis as its Chairman and
Chief Executive Officer, effective December 29, 2003. No
replacement has yet been named as Rudis' successor. The resignation
was expected and is in conjunction with TreeCon's October 2002
spin-off of its former subsidiary, Overhill Farms, Inc. Rudis
continues to serve as Chairman and Chief Executive Officer of
Overhill Farms, Inc. The Company also disclosed, in response to
shareholder inquiries, that no further action has been taken with
respect to the previously announced proposal received from Florida
A.P., Inc. All negotiations between the Company and Florida A.P.
have been through Paul Tanner, former Chairman and CEO of TreeCon
(previously known as Polyphase Corporation and Overhill
Corporation), who apparently now leads the Florida investment
group. After reviewing the original proposal and following several
unsuccessful requests for additional information, the Company
determined that there was insufficient evidence of Tanner's ability
to complete the transaction or satisfy the Company's obligations.
The Company sought to obtain, among other things, financial
information concerning the proposed purchaser and evidence of its
ability to pay the purchase price, the identity of management and
control persons of Florida A.P. and the disclosure of Tanner's
affiliation with the group. Tanner was advised of the Company's
concerns and management's belief that execution of a definitive
agreement, as proposed, and/or Tanner's failure to orchestrate a
timely closing would put the Company at risk. Following further
negotiations involving Tanner and TreeCon's attorney, the Company
believed that a reasonable compromise had been reached and
instructed its counsel to draft a new proposal, on materially
similar terms, which was delivered to Mr. Tanner. Mr. Tanner has
never responded to such proposal, strengthening the Company's
belief that he did not have the ability to complete the proposed
transaction. Negotiations were further burdened by virtue of the
fact that the Company was holding a judgment against Mr. Tanner and
others in the approximate amount of $19.5 million awarded in a
civil lawsuit filed by the Company with regard to prior
transactions involving Mr. Tanner and other entities, which
remained unsatisfied despite a settlement with Mr. Tanner for a
discounted amount of slightly over $1.0 million. Though long past
due, Tanner has made no payments against the agreed settlement.
While negotiations with Florida A.P. were continuing, the Company
postponed collection efforts against Mr. Tanner. Having received no
response from Mr. Tanner with respect to the latest proposal as
described above, the Company recently commenced collection
activities, including initiation of foreclosure proceedings on
certain real property securing the indebtedness created by the
settlement agreement. The Company remains open to any and all
viable proposals presenting the potential to increase shareholder
value. TreeCon is a holding company with operations in the forestry
industry. DATASOURCE: TreeCon Resources, Inc. CONTACT: James Rudis
of Overhill Farms, Inc., +1-323-582-9977
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