Thomas Equipment Names Chief Restructuring Officer, CEO and COO Resign
Thomas Equipment, Inc., Milwaukee, Wis., announced that it has appointed Michael S. Luther as chief restructuring officer. Luther will be responsible for leading all day to day operations of the company, effective immediately.
James E. Patty, president and chief executive officer, and William Davis, chief operating officer, have resigned as part of the next phase of Thomas' restructuring. Thomas' Board of Directors approved an undertaking by Thomas' Compensation Committee to work out separation agreements with both that compensates each for their work for Thomas over recent months. Patty and Davis will provide Luther with transitional support. In addition, Patty will remain on Thomas' board of cirectors.
This news comes on the heels of the company's announcement that it was considering a sale of all assets. Earlier this year, Thomas Equipment filed for court-supervised restructuring for wholly owned subsidiary Thomas Equipment 2004, in which it laid off 141 employees. Thomas 2004 restructuring was designed to provide Thomas Equipment with appropriate financial resources to address short-term needs and successfully execute on longer-term strategic opportunities. More recently, wholly owned subsidiary Pneutech, Inc. also filed for court-supervised restructuring and successfully refinanced its existing credit facility with a larger $15 million credit facility provided by Greystone Business Credit II, LLC.
"The company continues to face significant short-term challenges that must be overcome to successfully implement longer term strategic opportunities," Luther said. "We will continue to push forward with the restructuring, and I am very confident that we can emerge as a stronger and more vibrant company."