Snyder Asks for Six Flags Election Validation
Redskins owner Daniel Snyder asked a judge to confirm that he and two associates were validly elected to the board of Six Flags, the theme-park company over which he has been trying to gain control. In a lawsuit filed in Delaware Chancery Court, Snyder, Mark Shapiro and Dwight C. Schar said they won the seats by written consent of a 57 percent shareholder majority.
In a telephone conference, Judge Stephen P. Lamb denied a motion by Snyder to prohibit the existing board from taking actions other than day-to-day operations pending independent review of the vote, saying it was not needed.
Lamb said that the current situation "doesn't threaten irreparable harm," that lawyers had given assurances that the company wouldn't accept a sale offer until at least late December and that the vote-review process would be prompt.
BearingPoint Rejects Default Claim
BearingPoint, a consulting firm whose accounting is being investigated by the U.S. government, rejected a claim by some debt holders that it defaulted on loan agreements and should repay. A law firm claiming to represent holders of more than a quarter of the company's 2.75 percent convertible bonds notified BearingPoint on Nov. 21 that it violated covenants on the debt, McLean-based BearingPoint said.
It marks the second time law firms purporting to represent BearingPoint debt holders have notified the company that it is in default on some bonds after failing to file 2004 full-year and 2005 quarterly results with the Securities and Exchange Commission.
"The covenants don't require us to have a filing," BearingPoint spokesman Steve Lunceford said. "We are very confident we are in compliance."
Chindex to Close Retail Pharmacy Line
Chindex, a Bethesda company that provides health care in China, is shutting down its retail pharmacy distribution business. Chief executive Roberta Lipson said it "has not contributed to the bottom line and has consumed cash." She said Chindex will focus on "our company's profitable and growing businesses in health care services and medical equipment distribution." Shares of Chindex closed at $7.01, down 74 cents.
Fairchild Executive Pay Settlement Approved
A Delaware judge approved Fairchild's settlement of a shareholder lawsuit alleging that chairman and chief executive Jeffrey Steiner received excessive compensation. The settlement calls for Steiner to repay $833,333 of the more than $5.6 million that the company expended on his behalf in a French court case. The settlement allows the McLean-based distributor of aircraft parts and motorcycle gear to forgo $933,000 in contributions to his retirement plan this year and $150,000 in annual life insurance premiums. Under the settlement, it appears that Steiner and his son, Fairchild President Eric Steiner, could avoid salary reductions contained in an earlier settlement proposal rejected by the Delaware Chancery Court.
Compiled from staff and news service reports.