PEKING (dpa-AFX) - SmartHeat Inc. (HEAT) announced the resignations of James Jun Wang, Chairman of the board, President and CEO, Wen Sha, Vice President of Marketing, Xudong Wang, Vice President of Strategy; and Chief Financial Officer Zhijuan Guo. Jun Wang, Sha and Xudong Wang would continue in all of their current roles with SmartHeat's units, but would not be affiliated with SmartHeat, the U.S. holding company incorporated in Nevada, whereas Guo has resigned from all roles and responsibilities with SmartHeat and its subsidiaries.
Meanwhile, at a two day board meeting ended on May 25, 2012, Oliver Bialowons was named Director and President of SmartHeat to fill the roles formerly held by James Wang. The board directed management to coordinate with SmartHeat's subsidiaries to select SmartHeat's new CFO as soon as possible.
Also, the board approved the retention of Nimbus Restructuring Manager LLC as Restructuring Adviser to assist SmartHeat's board to address its financial and liquidity issues reflected in Note 2, 'Cash and Equivalents', in the Notes to Consolidated Financial Statements included in its Quarterly Report on Form 10-Q for the quarter ended March 31, 2012.
In order to address SmartHeat's immediate cash needs, the board approved borrowing up to $1.0 million to fund ordinary course operating expenses under a binding commitment letter for a Revolving Line of Credit, subject to an acceptable fairness opinion, negotiation of final terms and the execution of a definitive agreement.
Copyright RTT News/dpa-AFX