APN in strife as five resign

APN in strife as five resign

APN has been plunged into deeper turmoil after CEO Brett Chenoweth (pictured), chairman Peter Hunt and three directors handed in their resignations last night.

B&T Magazine
Posted by B&T Magazine

The action was triggered by an effective vote of no confidence from Irish majority stakeholder Independent News and Media (INM) which yesterday called for an extraordinary general meeting to vote on the future of the board.

The company could now face being broken up after INM and hedge fund Allen Gray strongly opposed a planned capital raising by the media group.

Differences were highlighted in a meeting on Sunday when the departing group voiced their opinion the capital raising should take place when the group announces its full-year results on Friday.

However, the opposing faction argued it should be delayed while other options, including the sell off of assets to pay down the huge debt pile, should be looked at.

In a statement to the ASX the company said the departing directors had all "unanimously" voiced their support for Chenoweth's position on the issue making it "not tenable for them to continue".