Former Chairman and Majority Shareholder of Westech Capital Corporation (WTEC) Proposes New Slate of Directors
John J. Gorman IV asks Westech shareholders at meeting today to approve new leadership for company.
FOR IMMEDIATE RELEASE
Austin, TX - September 17, 2013. John Gorman IV has asked shareholders at today’s meeting to approve his return to the Board of Westech Capital Corporation, along with his slate of 6 other Directors. Gorman was one of the seven original founders in 1994 of Tejas Securities. After merging Tejas into Westech in 2001, Gorman became Chairman of the Board of Westech where he spent over 19 years. He remains the majority shareholder of Westech.
In an open letter to Westech shareholders published today, Gorman said:
“For the past couple of years, I have been concerned with the direction of the Company and the lack of seasoned leadership to direct the Company’s activities. Whenever I raised those concerns, I was consistently outvoted on the board. In June of this year, I felt I had no choice but to announce my resignation from the Board. Since the Company has continued heading, in my view, in the wrong direction, I believe the best course of action for the Company, and the best way to create value for the Company’s shareholders, is for me to rejoin the board and replace the holdover directors with a slate of savvy, seasoned individuals that I have proposed.”
This current dispute as to who are the bona fide members of Westech’s Board of Directors is currently pending in Delaware Court of Chancery, which issued a Status Quo Order that essentially allows the Company to continue to operate as it was prior to the dispute. As part of the Status Quo Order, Messrs. Salamone, Halder, and Dura continue to be recognized as directors of the Company, though their powers and authority to manage the company are limited and subject to Court oversight.
In proposing his slate, Gorman invoked the words of his friend and mentor, the late John C. “Bruce” Waterfall, one of the greatest investors in the history of distressed investing, who said, “Great opportunities are born from great pain.”
Gorman said, “The proxy statement I sent out contains detailed biographies of the individuals I nominated: Barry Williamson, Greg Woodby, T J Ford, Barry Sanditen, Dan Olsen and myself. All of these individuals have impressive backgrounds, including Mr. Williamson, the former Texas Railroad Commissioner, and Mr. Ford, a recipient of the Naismith and Wooden awards as the outstanding college basketball player of the year. Together, they will make a fantastic team to lead Westech forward.
“As soon as today’s shareholders’ meeting is over, I will ask the Delaware Court to validate the will of the holders of the substantial majority of the outstanding Westech stock and seat the proposed board of Barry Williamson, Greg Woodby, T J Ford, Barry Sanditen, Dan Olsen and me. We will use our best efforts to right the Westech ship and recover the unauthorized bonuses, excessive attorneys’ fees, and remedy any other damages caused by Messrs. Halder, Salamone, and Dura and those aiding them.”
Ticker Symbol: WTEC
For a full copy of the shareholder letter, go to: www.JohnGormanresponds.com
Marla Shultz
917-723-7167
About John J. Gorman IV: John Gorman served as Chairman of the Board for Westech Capital Corporation from 2001-2013. He was Director of Tejas Securities Group, Inc. since founding Tejas in 1994. Over the past 19 years, Mr. Gorman has gained a wealth of leadership experience through his positions as Vice President at both Dean Witter and Shearson Lehman in Dallas, and Senior Vice President at both Landmark Group and APS Financial Corporation in Austin. Mr. Gorman’s strong business and community background is bolstered through his experience on Creditor Committees including Federated Department Stores, Appletree Supermarkets and Maxicare Health, and on the Board of Directors for Lincoln Heritage Corporation, First Republic and M Corp.
# # #
Tags: