Auto supplier Visteon Corp. stated in a regulatory filing that William Redmond Jr. will resign from the board, effective May 20, since he disagreed with how the nominations for new directors are being handled. Visteon exited bankruptcy last October.
Last Wednesday, Visteon said that it will name two new directors by Aug. 1 based on recommendations by shareholder Alden Global Distressed Opportunities Master Fund LP. Redmond will be replaced by one of the new members.
In a May 8 letter sent to the board after its annual meeting, Redmond said that Visteon sought to retain its legal counsel and public-relations firms to prepare for a proxy fight if Alden drops a proposal to put off the addition of two new directors in September.
After the August appointments were announced, Alden agreed to a “standstill" period." In the letter, Redmond wrote that this battle will have “no winners.”
He also pointed out that the biggest loser is its collective shareholder value since the issue had been a distraction and that it has taken its toll on the management as well as on the board’s time.
Redmond also revealed that Visteon suffered from the management’s poor handling of the shareholders. Redmond explained that Alden is not a "lone voice in the wilderness," and that it would be "irresponsible" of Visteon to use money on opposing the "reasonable agenda" that Alden has made.
In the filing, Visteon said that it welcomes recommendations and other constructive input from its shareholders and said that via an open dialogue, it entered a deal with Alden that is consistent with the best interests of all of its shareholders.