INTELLICALL SUSPENDS MEMBERS OF MANAGEMENT
INTELLICALL SUSPENDS MEMBERS OF MANAGEMENT DALLAS, March 30 /PRNewswire/ -- Intellicall, Inc. (NYSE: ICL)
announced today that it has suspended four members of senior management and one additional employee in connection with the company's failure to disclose timely in previous quarterly reports that it had been in default under its loan agreements. The company also indicated that the filing of its annual report on Form 10-K would be delayed.
The company's board of directors suspended the individuals at the recommendation of the Audit Committee which, with the assistance of the Washington, D.C., law firm of Wilmer, Cutler & Pickering, has been conducting an investigation into the events surrounding the loan agreement defaults. The suspended individuals are: R. Stephen Polley, president and chief executive officer; Thomas A. Floerchinger, senior vice president, chief financial officer and secretary; Robert R. Davenport III, senior vice president of corporate development and treasurer, and formerly chief financial officer; Robert Lloyd, vice president of financial planning and analysis, and formerly vice president and controller; and John Carradine, director of finance. The individuals have been suspended from all decision-making capacities, but all have agreed to remain in the company's employment to assist the company's interim management pending completion of the Audit Committee's investigation. The company also announced that it has entered into an agreement with James P. Hassett to become interim president and chief executive officer for a short period of time until the company once again has permanent management in place. Hassett, who is 60 years old, has served as chief executive officer of a number of public companies, including a number of computer leasing companies. He has special experience in managing companies faced with financial difficulties and other crisis situations. The company intends to appoint an interim chief financial officer promptly. The company said that the filing of its annual report on SEC Form 10-K would be delayed as a result of the suspension of senior management and difficulties in obtaining certification of the company's financial statements in light of management's role in the failure to disclose publicly the covenant violations. The company is also working to complete the negotiations with its lenders before filing its Form 10-K. The company intends to file with the Securities and Exchange Commission a notification of late filing indicating that it anticipates filing its SEC Form 10-K by April 14, 1992. The company also said that the Audit Committee's investigation had discovered breaches of the company's loan agreements in addition to those disclosed by the company on March 13, including a breach at the end of the first quarter of 1991. Some of these breaches have not been waived by the lenders, even on a temporary basis. The company said that negotiations with its lenders were continuing. All existing temporary waivers of the breaches, which were previously disclosed by the company, are scheduled to expire on March 31. In the event that negotiations with its lenders are unsuccessful, and the lenders accelerate the loans, the company would not immediately have sufficiently liquid resources to repay the loans. The company also said that it had retained the law firm of Fried, Frank, Harris, Shriver & Jacobson to counsel to company in further negotiations with its lenders, disclosure issues and other matters. Intellicall, Inc. is a diversified telecommunications company providing innovative technology and services to private pay telephone networks throughout the United States, and is the nation's leading manufacturer of privately owned pay telephones, automated operator systems and call processing systems. Company stock is traded on the New York Stock Exchange under the symbol "ICL" and is listed in alphabetical quotations as "Intellicall" or "Intelcal." -0- 3/30/92 /CONTACT: Jody Kendrick or Larry Meltzer, Meltzer & Martin Public Relations, 214/953-0808, for Intellicall/ (ICL) CO: Intellicall Inc. ST: Texas IN: TLS SU: PER SM -- NY066 -- 2899 03/30/92 12:35 EST
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|Date:||Mar 30, 1992|
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