Cape Fear Bank Corporation (Nasdaq: CAPE) is pleased to announce it has reached an agreement with a group led by investor Maurice J. Koury. The company strongly believes that the settlement will result in an enhanced board of directors and a stable, focused effort to deliver maximum value to shareholders.
In connection with the settlement agreement, the current board and Mr. Koury's group have agreed to reconstitute the board of directors immediately with the following individuals: Walter Lee Crouch Jr., Becky Parker O'Daniell, Craig S. Relan, Walter O. Winter, David Lucht, James S. Mahan III, Mort Neblett and Scott C. Sullivan.
The annual meeting of the shareholders scheduled was be postponed, with a new meeting to be scheduled in the coming weeks. At the annual meeting, the board intends to nominate each of the individuals identified above as well as a ninth, independent director agreed upon by both parties.
"We believe this settlement is the best outcome for shareholders of Cape Fear Bank Corporation. This resolution will allow us to put the proxy contest behind us and focus on our customers, employees and community. I look forward to working together with this new board of directors in a focused manner to allow Cape Fear to reach its full potential," said Mr. Crouch, the company's Vice Chairman.
Mr. Crouch added, "While the rhetoric of a proxy contest can get heated, I am now convinced that all parties involved want what is in the best interests of Cape Fear and its shareholders. I ask all parties involved, including the shareholders, to put aside any preconceived notions or bruised feelings they may have and instead focus on the positive potential of this company."
Mr. Koury stated, "Our campaign for change at Cape Fear always has been about protecting and enhancing shareholder value, and never about control or any particular investor's interests. This agreement provides a critical boost to the board's strength and experience and gives all shareholders a clear assurance that their interests will drive the decisions of the board of directors."
Mr. Koury went on to say, "On my own behalf and on behalf of Messrs. Lucht, Mahan, Neblett, Sullivan, Cochrane and Isser, we appreciate all of the support and kind words the shareholders of Cape Fear offered to us during this process."
Mr. Mahan added, "Scott, David, Mort and I are excited to work with Lee, Becky, Craig and Walter on behalf of all of the shareholders of Cape Fear." -- Cape Fear Bank Corporation
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