A U.K.-based investment fund today criticized the leadership of Walter Energy Inc., and announced that it would nominate five replacement directors at the upcoming stockholders meeting.
The fund, which is related to hedge fund Audley Capital Advisors LLP, accused Birmingham-based Walter (NYSE: WLT) of regularly missing quarterly earnings guidance, of lacking consistent leadership with four CEOs in five years, of making questionable financial decisions that have left the company with $2.3 billion in debt, and of failing to control costs that could save as much as $40 million per year.
Walter's 10-member board took the brunt of Audley's criticism. In its release, the fund skewered the board as being "stale" and "out of depth," with six directors over 65 and only three members with experience in the coal industry.
For those reasons, Audley said it plans to nominate five directors at the next annual stockholders meeting, the date of which hasn't been determined. Those nominees are Eddie Scholtz, Mark Lochtenberg, Robert Stan, Lawrence Clark Jr. and Audley Managing Partner Julian Treger, all of whom are men under 60 years old.
Walter Energy today tersely acknowledged Audley's nominees, and responded with the announcement that one of its long-time board members, Howard Clark, is retiring.
The company said Audley has not communicated with Walter about its proposed slate of directors outside of today's public announcement.
Walter's statement also said its "board and management team remain fully committed to creating value for all shareholders through the successful execution of the company's strategy."
Clark's seat will be filled by Mary R. "Nina" Henderson, managing partner at the consulting firm Henderson Advisory, the company said in a release today.
Ryan Poe covers real estate, retail and manufacturing for the Birmingham Business Journal. Click here to follow him on Twitter. Click here to join him on Google+.
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