Sat, Jul 26, 2014, 4:35 AM EDT - U.S. Markets closed

Recent

% | $
Click the to save as a favorite.

Seitel, Inc. (SEI) Message Board

  • loadthesilo loadthesilo Jun 5, 2002 8:22 AM Flag

    REAL NEWS

    Wednesday June 5, 7:52 am Eastern Time
    Press Release
    SOURCE: Seitel, Inc.

    Seitel Announces Changes in Board of Directors
    HOUSTON, June 5 /PRNewswire-FirstCall/ --

    Seitel, Inc. (NYSE: SEI - News; Toronto: OSL - News) announced today two changes in its Board of Directors intended to further strengthen its governance structure. Fred S. Zeidman, a Director of the Company since 1997, has been elected Chairman of the Board replacing Paul A. Frame, who voluntarily relinquished the position and will continue to serve as President and CEO. Mr. Zeidman is Managing Partner of WoodRock & Company and is a member of a number of civic and non- profit organizations.

    Robert L. Knauss, Chairman and CEO of Baltic International USA, has been elected to join the Board. Mr. Knauss is the former Dean of the schools of law at both the University of Houston and Vanderbilt University and served as a Visiting Professor at the Amos Tuck School of Business Administration at Dartmouth College. Mr. Knauss serves as a Director of three other publicly traded companies.

    The Board of Directors has appointed Mr. Knauss as the sole member of the independent committee to review the allegations made in the derivative actions filed against certain officers and directors of the Company. The Board has given Mr. Knauss full powers to investigate the allegations. Mr. Knauss had no previous connection to the Company.

    In addition to the changes in its membership, the Board reconfirmed its direction to the Company to promptly take all appropriate steps to improve the Company's financial position, including reducing capital expenditures and overhead and pursuing financing options. The Company is continuing its discussions with the holders of its Senior Notes regarding its non-compliance with covenants contained in the Senior Note Agreements.

    The Company also announced that it has initiated legal action in Federal District Court in Houston, Texas seeking a declaratory judgment with respect to the employment agreement between the Company and Herbert M. Pearlman, former chairman of the Board of the Company. Following his resignation, Mr. Pearlman and the Company entered into negotiations for a restructuring of his employment agreement. During the negotiations, a document was created which Mr. Pearlman now alleges has superseded the employment agreement. The Company asserts that the document was not approved by the Board of Directors or the Compensation and Stock Option Committee. The Company seeks a judgment declaring the effect of Mr. Pearlman's resignation on the employment agreement, whether the Company owes any amounts under the employment agreement as a result of his resignation and, if so, how much, and a judgment that the subsequent document is not binding on the Company and is not enforceable by Mr. Pearlman against the Company.

    The Company also stated that a total of ten lawsuits alleging violations of the securities laws have been filed against the Company and certain current and former officers and directors of the Company. The plaintiffs are seeking certification as a class action. The Company intends to vigorously defend itself in these cases. In addition, three derivative actions have been filed, all of which have previously disclosed. Harold G. Basser v. Paul A. Frame et al. (No. H-02-1874), which was earlier described as a class action, is in fact a derivative action. As indicated above, the Board of Directors is undertaking an independent investigation of the allegations and, upon completion of the investigation, will take whatever action may be appropriate.

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • Only an academic would preside over this mess, because he doesn't have to worry about going into business again; he's tenured!

      • 3 Replies to loadthesilo
      • Loadthesilo, once again you self-destruct and make yourself look like a really stupid fool. You stupidly said "Only an academic would preside over this mess, because he doesn't have to worry about going into business again; he's tenured."

        Can't you read???

        Robert L. Knauss is already in business again. He is Chairman and CEO of Baltic International USA. He was a former academic, gave up such prestigious positions to stay in the business world, and his "tenure" in business depends on his ability and reputation. Whether you post under your loadthesilo alias or your framesbane ID, you continue to sound like a complete dumb ass.

      • If you see the CFO and COO resign
        in the near future you will know the
        bondholders are serious about keeping
        the company alive. I think the bondholders
        are on a fishing expedition right now.

      • This news actually confirms that there is real trouble at Seitel (stock down on news, too).

    • Seitel's addition of these two distinguished directors is indeed great news. It also shows that the company is far from any bullshit bankruptcy innuendo being thrown about by this board's vindictive usual slandering bashers. ALL DIRECTORS of public companies would have to disclose in all public filings of ANY public company they are involves with in the future if they were associated in a directorship capacity with any company that filed bankruptcy.

      Ask yourselves if someone like Mr Krause would RUIN his name in that way??? Mr. Knauss is the former Dean of the schools of law at both the University of Houston and Vanderbilt University and served as a Visiting Professor at the Amos Tuck School of Business Administration at Dartmouth College. Mr. Knauss serves as a Director of three other publicly traded companies. Why would someone like that get involved with a company that even had a remote chance of filing for bankruptcy.

      As I posted Monday, the GREAT NEWS just keeps coming.

      • 2 Replies to jrnikro
      • Jmikro, my good friend, you make some good points in your post. However, there is still the yet unaddressed UNCERTAINTY of the defaulted notes problem. UNCERTAINTY = RISK.

        Be careful not to get to exuberent while default hangs over Seitel's head. Thes new directorships could have been forced and crammed down SEI's throat by the lenders, yet there is still no announcement of any agreement between the lenders and the company. It could be that the lenders are going to wait for the results of Mr. Krause's investigation. If so, the uncertainty lingers and lingers and again uncertainty equals risk.

        If you are long which your tenor seems to indicate, you are playing with fire my good friend.

      • Volcker presided over the demise of Andersen and that's what's happening here; they don't want Frame's sticky fingers around.

        So, Curvedboob, you are long! Wow, you must of been hurtin' here lately!

 

Trending Tickers

i
Trending Tickers features significant U.S. stocks showing the most dramatic increase in user interest in Yahoo Finance in the previous hour over historic norms. The list is limited to those equities which trade at least 100,000 shares on an average day and have a market cap of more than $300 million.