Disharmony amongst the executive ranks at struggling Suntech Power Holdings would seem to have reached a peak with the immediate exit of several key directors.
The most high-profile resignation was the exit of Chairwomen, Ms. Susan Wang after rejoining the company in March, 2013.
Other directors, including Julian Worley, and Zhizhong Qiu also resigned with immediate effect.
However, Suntech was compelled to explain the reasons behind the resignations, noting that the independent directors felt the company was not keeping them informed on critical developments as well as the company not implementing some of their proposed actions.
The most damning aspect was the belief of the directors that Suntech lacked a clear business plan. The full-list of concerns is as follows:
• The issues of concern cited by the departing directors were the following:
• Severe cash flow drain with unclear prospect of securing new capital;
• Difficult prospects on completing consensual restructuring with convertible bondholders;
• Lack of clear business plan
• Loss of critical talent and potential severe HR retention issues
• Failure to pay outside legal counsel
• Potential erosion of internal controls; and Impairment of employees' ability to function effectively
In response, Suntech said in a statement that Philip Fan, Michael Nacson, Kurt Metzger, Weiping Zhou, Dr. Zhengrong Shi, and David King would continue to serve as directors of the company, while the three independent directors, Fan, Nacson and Metzger, were said to have seen the progress being made in regard to the issues raised by the resigning directors.