You can see a copy of the SEC document here. The document states CEO Gary Pruitt resigned Wednesday as one of the four directors of the family trusts that collectively control 41% of MNI’s stock.
Alan thinks the McClatchy family is making a bid to take the company private.
The filing states chief executive Gary Pruitt resigned Wednesday as one of the four directors of the family trusts that collectively control 41% of MNI’s stock. Long-time company director Leroy Barnes, Jr., a retired utility executive, is replacing Gary.Alan points out since the stock is so low, going private makes sense to people who think the newspaper business can rebound.
Gary would have to step down as a trustee if the family were preparing to buy back the battered public shares of the company. That’s because a chief executive would not be viewed as properly representing the interests of all shareholders if he also sat on the board of a group of insiders trying to acquire full control the company for a fraction of what it was worth two years ago.
Alan sees 2 other possibilities. One, Pruitt is leading a group of investors to buy the company, and two, the McClatchy family is having frank discussions about the leadership of the company, and doesn't want Pruitt present during the meetings.
Stay tuned.
6 comments:
Does any legal mind knows what would happen to the buyouts & insurance promises made? At the KC Star they promised a 12 month company paid insurance if you took less of a money buyout.
McClathcy watch....please post this question someway that we can get an answer. Thanks for your help along the way.
I'm not a legal mind, but buyouts are typically contractual agreements, aren't they? So if they are, unless there was an out in the contract, you should still be in good shape.
I am no legal mind, but filing for Chapter 11 reorganization under federal bankruptcy laws allows the courts to review existing contracts. That doesn't say they are going to revoke or change them, but they can. I would not let this bother me because I doubt if they would alter this agreement.
Funny you should mention an "out in the contract". When we asked to see the contract before signing for the buyout they would not provide it to us. On the last day September 12, 2008 we work then we can see it but not before. We also will not receive our money for the buyout until we sign the contract. How much you want to bet that THERE IS SOMETHING in the contract that they will be allow to get out of it.
Bargaining unions have a negotiated severance contract, but is there an out?...The company lawyers have been known to sneak in a little word or phrase in order to alter the meaning of the contract. Have your union lawyer look it over very carefully. Lucky for those who got out already with the cash. We have till Sept 28 and each day keeps us wondering.
Sorry to say our paper is not union anymore and hasn't been for several years. Has to seem reason they are HIDING the contract until your strapped for money.
Anybody heard of a class action
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