Saturday, August 26, 2006
LEE RESIGNS FROM NRV BOARD
LOS ANGELES, Aug 25 (Reuters) - National R.V. Holdings Inc. (NVH.N: Quote, Profile, Research) said in a regulatory filing on Friday that Robert Lee, founder of one of its two units, resigned from its board and that it disagrees with his resignation letter in which he cites "the ongoing crisis" he believes threatens its future.
In his letter dated Aug. 21 Lee said: "I have been largely unsuccessful in persuading the board to take any action to deal with the ongoing crisis of this company."
Lee, who founded the company's Country Coach subsidiary in 1973 and has been a director since November 1996, said that "it is irresponsible to continue to retain a CEO who has lost some $80 million in a short period of time with additional losses a virtual certainty in the near future."
He added that the board's "lack of action could create personal liability of directors to shareholders for the loss of this company" and that the crisis "threatens the very future of this company."
In November, the company rejected as inadequate a takeover proposal worth about $92 million from CC Acquisition Group, led by Lee.
National on Aug. 11 reported a second-quarter net loss of $7.1 million. It said more than $5 million of that loss was was attributable to defective fiberglass sidewall material used on about 70 motor homes, and that $1.1 million was attributable to a reserve established in the quarter to address a recall of tires the company determined were defective.
It has sued the sidewall supplier to recover damages.
Shares of National were unchanged at $3.93 on the New York Stock Exchange.
In his letter dated Aug. 21 Lee said: "I have been largely unsuccessful in persuading the board to take any action to deal with the ongoing crisis of this company."
Lee, who founded the company's Country Coach subsidiary in 1973 and has been a director since November 1996, said that "it is irresponsible to continue to retain a CEO who has lost some $80 million in a short period of time with additional losses a virtual certainty in the near future."
He added that the board's "lack of action could create personal liability of directors to shareholders for the loss of this company" and that the crisis "threatens the very future of this company."
In November, the company rejected as inadequate a takeover proposal worth about $92 million from CC Acquisition Group, led by Lee.
National on Aug. 11 reported a second-quarter net loss of $7.1 million. It said more than $5 million of that loss was was attributable to defective fiberglass sidewall material used on about 70 motor homes, and that $1.1 million was attributable to a reserve established in the quarter to address a recall of tires the company determined were defective.
It has sued the sidewall supplier to recover damages.
Shares of National were unchanged at $3.93 on the New York Stock Exchange.
