Post says Timminco will want to avoid Ceramic's fate
2008-04-25 08:20 ET - In the News
Also In the News (C-CEP) Ceramic Protection Corp
The Financial Post reports in its Friday edition that Timminco will want to avoid Ceramic Protection's tribulations. The Post's Barry Critchley, writing in Off the Record, says Timminco's chairman and chief executive officer is Heinz Schimmelbusch, the former CEO of Metallgesselschaft. He was fired in 1993 after the company's $1.2-billion (U.S.) in trading losses.
In September, 2004, Mr. Schimmelbusch was the chairman of Allied Resource when that company sold Alanx Wear Solutions to Alberta's Ceramic Protection. At the time, John Walsh was Alanx's CEO. As part of the deal, he joined Ceramic Protection. In December, 2006, Mr. Walsh moved on to became president and CEO of Timminco.
In August, 2007, Mr. Walsh became president of Timminco's magnesium division. Two weeks ago, Timminco said Mr. Walsh "had resigned to pursue other opportunities." Ceramic's problems started in September, 2006, when Arizona-based ArmorWorks, a customer of Alanx, cancelled a supply agreement. Ceramic sued. ArmorWorks countersued.
Thirteen months later, Ceramic and ArmorWorks settled. During that period, Ceramic's shares fell from $23.98 to $6.50 the day before the resolution was announced. The stock closed Thursday at $2.35.