Massey Energy Company (NYSE:MEE) is holding is annual shareholders' meeting today, at the Jefferson Hotel in Richmond, Virginia. The record date is March 19.
Massey is the owner of the Upper Big Branch Mine in the suitably named town of Montcoal, West Virginia, where an explosion took place on April 5 of this year that killed 29 miners.
A special board of directors panel has been looking into that explosion, and it was expected top release its preliminary report today, but reports are that won't happen -- that the board will simply say it is still gathering information.
Meanwhile Massey announced Friday that it will "actively work toward the declassification of the Board." No action on that point will occur at today's meeting, but "within the next three to six months, the Board of Directors intends to hold a special meeting of the shareholders" to consider the declassification amendment to the certificate of incorporation.
But because of the existing unamended staggering, only three members of the Board are seeking re-election today: Richard M. Gabrys, Dan R. Moore, and Baxter F. Phillips. Each of these nominees Two proxy advisory firms, Glass Lewis and RiskMetrics, have recommended that shareholders withhold any vote for these nominees. If their advice has caught on, and those nominees fail to receive a majority of votes, a recently-adopted rule demands that they submit their resignations (although it doesn't indicate whether their colleagues will accept the resignation once submitted).
Intriguingly, all three of the incumbents up for re-election today serve on the board's safety committee. If these guys are going to continue to lead unruffled directorial lives, then the concept of a captain going "down with his ship" seems to have withered completely away from us.
Showing posts with label Virginia. Show all posts
Showing posts with label Virginia. Show all posts
Tuesday, May 18, 2010
Monday, May 26, 2008
Massey Loses Big in Court
Massey Energy Co., headquartered in Richmond, Vir., is the parent company of Central West Virginia Energy Co., and thus a party to some high-stakes litigation against Wheeling-Pittsburgh Steel Corp.
About a year ago, a trial jury found that Massey and CWVE had reneged on a contract to supply coal to WPS. It found damages of $220 million: $120 million compensatory; $50 million punitive assessed against the parent-corp. defendant; another $50 million punitive assessed against its subsidiary.
Massey had argued unsuccessfully that the apparent breach was actually an instance of "force majeure," i.e. a circumstance in which performance had become impossible for reasons that could not reasonably have been anticipated.
Last week, the West Virginia Supreme Court said that it would not hear an appeal -- which in turn means that it appears the verdict will stand, and Massey is on the hook for the full $220 million plus post-judgment interest.
In a press release, Massey sought to allay shareholder concern by saying that the amount at issue is "approximately only 5 percent of the company's market capitalization." Only? One-twentieth of the company is gone with the stroke of the appellate court's pen and they say this is a matter worthy of the word "only"?
That strikes me rather as whistling past the graveyard.
Massey has in the past attracted attention from activist shareholders. Last year (just a couple of months before the jury verdict) hedge fund Third Point waged a successful proxy campaign to get two of its representatives on the Massey board.
Third Point is no longer at all so heavily invested in Massey as they once were, although they aren't out completely. As their last quarterly filing with the SEC they said they owned $59,000 of its stock. Will they sell it now? Or will they perhaps hold on, expecting that in time this storm will pass -- that 5% loss will be sustained and growth will nonetheless resume?
About a year ago, a trial jury found that Massey and CWVE had reneged on a contract to supply coal to WPS. It found damages of $220 million: $120 million compensatory; $50 million punitive assessed against the parent-corp. defendant; another $50 million punitive assessed against its subsidiary.
Massey had argued unsuccessfully that the apparent breach was actually an instance of "force majeure," i.e. a circumstance in which performance had become impossible for reasons that could not reasonably have been anticipated.
Last week, the West Virginia Supreme Court said that it would not hear an appeal -- which in turn means that it appears the verdict will stand, and Massey is on the hook for the full $220 million plus post-judgment interest.
In a press release, Massey sought to allay shareholder concern by saying that the amount at issue is "approximately only 5 percent of the company's market capitalization." Only? One-twentieth of the company is gone with the stroke of the appellate court's pen and they say this is a matter worthy of the word "only"?
That strikes me rather as whistling past the graveyard.
Massey has in the past attracted attention from activist shareholders. Last year (just a couple of months before the jury verdict) hedge fund Third Point waged a successful proxy campaign to get two of its representatives on the Massey board.
Third Point is no longer at all so heavily invested in Massey as they once were, although they aren't out completely. As their last quarterly filing with the SEC they said they owned $59,000 of its stock. Will they sell it now? Or will they perhaps hold on, expecting that in time this storm will pass -- that 5% loss will be sustained and growth will nonetheless resume?
Subscribe to:
Comments (Atom)
