John S. Rendall Resigns as Chairman of the Board of DirectorsAnd Chief Executive Officer of Solv-Ex Corporation
Solv-Ex Suspends All Research and Development Activities
ALBUQUERQUE, N.M., Nov. 2 /PRNewswire/ -- Solv-Ex Corporation (OTC: SVXC) reported that John S. Rendall resigned as the Chairman of the Board of Directors and Chief Executive Officer of the Company effective November 1, 2000. The Company also reported that Herbert M. Campbell, II had previously resigned as a director.
Frank Ciotti, Chief Financial Officer of the Company, was then elected to the position of Chief Executive Officer of the Company. Following the Board of Directors' meeting held on November 1, 2000, all remaining outside directors of the Company also resigned, leaving Mr. Ciotti as the remaining sole director of the Company.
Mr. Ciotti stated, "Due to cash flow problems, the Company has suspended all research and development activities. The Company is in the process of evaluating its alternatives, which most likely will require the filing for protection under the bankruptcy laws in order to attempt a restructuring of the Company." Mr. Ciotti further stated that the Company has entered into an agreement with two of its secured debenture holders, Altamira Management Ltd and ABN Amro Bank (Switzerland) (together the "Debenture Holders"), which extends the due date on their outstanding debt until December 29, 2000. If these obligations are not paid by December 29, 2000, the Debenture Holders have the right to request the appointment of a receiver and proceed with the liquidation of their collateral, which includes the Company's buildings and equipment in Albuquerque, New Mexico.
The Company received a letter from the Securities and Exchange Commission ("SEC") dated October 18, 2000 requesting the filing of delinquent Forms 10-K and 10-Q dating back to June 30, 1997, which precedes the date of the Company's filing for bankruptcy protection under Chapter 11 in August 1997. The SEC stated that failure to file the delinquent reports may result in appropriate enforcement action at any time. The Company does not have the financial or personnel resources to comply with the SEC request.
Oh my!
Dick Hurtz |
