Sept. 28, 2007 — A court-appointed bankruptcy trustee has fired the entire Innovative Communications board of directors, according to documents obtained by the Source.
Stan Springel, the Chapter 11 bankruptcy trustee, informed the board and its attorneys of his decision by fax and email Friday.
“Be it resolved that the removal of all existing directors by ECI (Innovative) from the board of directors … is approved and directed as of September 28, 2007,” reads the trustee’s order.
This is the latest in a long string of actions relating to ICC’s ongoing Chapter 11 bankruptcy proceedings. (See "ICC, Prosser File for Bankruptcy.")
The directors were Samuel Ebbesen, Michael Prosser, Richard Goodwin and John Raynor.
Springel fired primary shareholder Jeffrey Prosser from the position of president and chief executive officer on Monday. His attorneys notified the parties by fax and email, as with Friday’s order. The trustee ordered the board to cease all compensation to Prosser and deny him use of corporate assets, including the corporate Boeing 727. He also ordered the board to terminate ICC Vice President Holland Redfield II. (See "Prosser Fired by Court-Appointed Trustee.")
“I have not been notified verbally or in writing of any such thing,” Redfield said when asked about the order Wednesday. He said he had heard the rumors on the radio, but no one had spoken to him about it. Redfield said he was not authorized to comment publicly on any of the related issues.
Thursday, four days after Prosser's firing, ICC issued a news release saying Prosser had resigned and Ebbesen had been chosen to replace him.
“The decision to step aside was made in the best interest of our employees and our company due to ongoing litigations,” Prosser says in the release. The V.I. Daily News also reported that Prosser had resigned.
Springel’s order Friday says Ebbesen is no longer eligible for the position because he is no longer on the board of directors.
“Given the requirements of Section 69(a) of the General Corporation Law, Samuel Ebbesen is no longer eligible to serve as president and chief executive officer of the corporation,” Springel wrote.
The order specifies the legal authority under which he terminated the directors: a Sept. 7 order by U.S. Bankruptcy Judge Judith Fitzgerald giving him power to act as sole shareholder with specific powers to remover both Prosser and the board of directors. (See "Judge Strips Prosser of Power Over Company Operations.") The order does not list the reasons for terminating the directors.
In 2005, the Rural Telephone Finance Cooperative (RTFC), ICC’s main creditor, filed a suit against the directors, complaining they acted solely in Jeffrey Prosser’s interest. (See "ICC Hit With Additional Lawsuit.")
“Each of the Board members of ICC and Vitelco receive cash payments of at least $100,000 a year as compensation for their board services as well other valuable benefits … such as trips on Prosser's corporate jet and luxury accommodations in the U.S. Virgin Islands,” said the RTFC court filing. “As a result, each of the … Defendants (is) incapable of exercising independent business judgment …."
The directors have a long history with Prosser and ICC. Michael Prosser is Prosser’s brother. John Raynor was Prosser’s personal attorney back home in Nebraska before Prosser came to the Virgin Islands in 1990.
Raynor filed for personal bankruptcy in 2004 because of his personal share of ICC’s debts. (See "ICC Lawyer Files for Personal Bankruptcy.")
Born on St. Croix, Ebbesen is a retired U.S. Army three-star general. He served 35 years in the military. His last assignment was deputy assistant secretary of defense for military personnel at the Pentagon, with responsibility for all policies concerning 1.4 million service members. He now serves as the civilian aide to the secretary of the army for the Virgin Islands. Ebbesen is godfather to Michael Powell, chairman of the Federal Communications Commission from 2001 to 2005 and son of former Secretary of State Colin Powell.
Richard Goodwin was an influential aide to President John F. Kennedy as a young man. He helped expose the quiz-show scandals of the 1950s. He is also married to author and historian Doris Kearns Goodwin.
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