Brookstone Partners Prepares Recapitalization Strategy to Rescue Platinum Power’s Projects
NEW YORK--(BUSINESS WIRE)--Mar 25, 2019--Brookstone Partners, Platinum Power’s reference shareholder, learned through the press that during Platinum Power’s Extraordinary General Meeting (“EGM”) on February 5, 2019, decisions other than those on the agenda were taken. These decisions would concern the appointment of new directors of the company and the retention of Omar Belmamoun as Chairman and Chief Executive Officer.
Brookstone Partners contends that, “if such information is correct, this decision would be contrary to the company’s legal and statutory provisions. As a reminder, the EGM does not and cannot be competent to appoint the Company’s Board of Directors. Any change to the agenda of the meeting must be done by unanimity.” In light of these factors, Brookstone Partners will seek the annulment of all decisions of this EGM other than those related to the continued operation of Platinum Power, which Brookstone Partners approves.
Brookstone Partners believes that the announcement does not reflect Platinum Power’s current situation, and the new Board of Directors thus constituted would be invalid.
Brookstone claims that “reappointing Mr. Belmamoun as CEO is a wrong-headed decision, which we oppose as a matter of principle.” Although surrounded by a dedicated and very high-quality team, there is mounting evidence that he has committed too many egregious management errors, which have led the company to the current situation. Brookstone Partners also disapproves that this EGM did not address recapitalization solutions.
As a majority investor, Brookstone Partners hopes to work with all shareholders, including minority shareholders, who have always demonstrated a strong willingness and determination to address the difficult situations that Platinum Power has faced to date, in order to find a viable, serious, and credible solution to move forward.
This intention to work for the development of Platinum Power and its projects is not new to Brookstone Partners. As the largest investor in terms of equity with 43.67% of Platinum Power and in terms of shareholder current accounts with nearly 80% of shareholder debt, Brookstone Partners has consistently supported Platinum Power since the company’s inception, and more specifically from August 2016 to May 2018, by helping to finance all the company’s expenses over this period. This support only ceased when Mr. Belmamoun decided to refuse the recapitalization plan. Brookstone Partners reaffirms its willingness to implement a recapitalization plan, conditional on the removal of Mr. Omar Belmamoun from the company’s management.
Brookstone Partners believes his obstinacy to remain CEO, while refusing the recapitalization plan, creates a prejudicial situation for the company, solely for the purpose of serving Mr. Belmamoun’s personal interests.
It is Brookstone Partners’ opinion that “today, Mr. Omar Belmamoun is taking the company, employees, other shareholders and projects hostage at the expense of the company’s survival. However, the current urgency is to improve the company’s financial situation, to finance salaries that are four months overdue, and to enable the company to honour its commitments, including those relating to agreements signed with African governments.”
As a reminder, Platinum Power has solemnly signed agreements concerning the development of large-scale projects in Cameroon and Côte d’Ivoire.
In this perspective, Brookstone Partners’ intentions remain unchanged, namely Platinum Power’s success in Morocco and Africa, for which Brookstone Partners has already invested $15 million in Platinum Power (in capital and current account). Mr. Michael Toporek thus reiterates, on this occasion, his willingness to rescue Platinum Power, its projects, and to honour the company’s commitments to its employees. Mr. Toporek is now focusing on preparing for the hearing on February 19, 2019 before the Commercial Court of Casablanca in charge of monitoring the company’s financial situation, during which he will present his vision and recapitalization strategy in order to save Platinum Power’s projects and investment.
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SOURCE: Brookstone Partners
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PUB: 03/25/2019 09:00 PM/DISC: 03/25/2019 09:00 PM