Microtec Enterprises board members disembark
August 5, 2004
ST. AUGUSTIN, Quebec - Six members of Microtec EnterprisesÃ¢â‚¬â„¢ board of directors have resigned after the companyÃ¢â‚¬â„¢s insurance carrier did not renew the policy that covered the directors and officers - leaving the six individuals unprotected in the event of lawsuits filed against the company.
According to Daniel Tardif, MicrotecÃ¢â‚¬â„¢s communications director, the incident is part of a transition - one that includes announcing a new investor into the financially strapped company in September.
Ã¢â‚¬Å“ItÃ¢â‚¬â„¢s a situation we cannot say very much about right now,Ã¢â‚¬Â Tardif said. Ã¢â‚¬Å“We do have something important coming up.Ã¢â‚¬Â
Sources within the security industry said Microtec has been on the market for some time and the announcement of a new investment partner may actually be a buyer for the security service provider. But an interested buyer may be hard to come by.
The company has struggled with its restructuring, trying to stay afloat amid a sea of debt. Earlier this year, it was suspended from the TSX Exchange for failing to meet minimum capitalization requirements and saw 19.9 percent of its subordinate voting shares purchased by Securex, a financial provider to the security industry, in an unsolicited offer.
Tardif said for now, the company is running as normal, although he did acknowledge that the resignations appear to add to the companyÃ¢â‚¬â„¢s troubles.
Ã¢â‚¬Å“From inside, we understand the insurance company did not want to maintain that level of security,Ã¢â‚¬Â Tardif said. Ã¢â‚¬Å“This situation is not serious.Ã¢â‚¬Â
For more on this story, see the September issue of Security Systems News.