Spoke to two senior members of management and remain convinced of Q1 production.
Ireland reported today to the company at 11:15a.m. EST that for the first time ever, Line 2 had been tested successfully at full speed.
This is a new milestone for the company, and management feels that the company can live with all small problems, if any, that remain.
Presumably, the fix on line 3 in Italy reported earlier has been successfully transferred to Ireland's line 2, ie the stainless steel belts and/or mesh. Furthermore the installation of the coating/laminating equipment has been completed and being started up.
Lev Dawson left the company earlier because of serious health problems which have since been mitigated. He is considered by BoD as much more than a cheerleader, as was reported earlier.
IMO, CR left the company for two principal reasons: (1) he had, as FMK reported, never intended to stay more than 5 years, had in fact had stayed 6 1/2 years, and felt that production problems have been substantially solved, and 2) there was considerable momentum at the company (engineers and BoD) to stop 'fine-tuning' and get on with production. The sale of shares was very poorly timed and upset enough of the wrong people at the company that a mutual parting was deemed the best course of action.
Finally, management does not think financing will be an issue in 1998.
Lines or credit are available, if need be, for any needs.
IMO, if anything, the flap over the sale of CR's shares will accelerate movement toward OEM contracts and production. |
