Jacobs resigns as head of Genmar

by Media Services on 17 Nov 2009 Irwin Jacobs has stepped down as CEO, chairman of the board and as a director of Genmar Holdings to avoid a potential conflict of interest as he pursues a purchase of the company.

In a letter dated Monday 9 November, company president Roger Cloutier says the change was effective 6 November.
'Given the circumstances surrounding Genmar as it moves forward in the sale of the company's business and non-core assets, this change in Mr. Jacobs' role was made in the best interest of all constituents,' Cloutier said. 'The separation will allow Mr. Jacobs to pursue his objectives relative to Genmar's asset sale process in an effective and independent manner and eliminates potential conflicts of interest.'

'I'm keeping all of my options open, everyone will just have to wait and see what the outcome is,' Jacobs said. 'I've stepped aside, I resigned from the board, so that I'm free to do whatever I want to do. Otherwise it would obviously be a conflict.'

Since Genmar filed June 1 for Chapter 11 bankruptcy protection, it has been operating under the direction of Manchester Companies, a firm that serves as the chief restructuring officer.

'At that time, the CRO was given the full authority generally vested in the chief executive officer role,' Cloutier said. 'An office of the president also was established, which included two representatives of Genmar and two representatives of Manchester.'

Mark Sheffert, chairman and CEO of Manchester Companies, commented that Jacobs has 'given a great deal to the Genmar organization and the boating industry' and stepping down as head of the company will allow the sale process to move forward in an 'effective and independent manner.'

Jacobs has said he plans to be the highest bidder for Genmar's assets. No other bidders have been named publicly.