Four members of ICG Communications Inc.’s executive management team resigned Monday as part of what the company described as “ongoing financial restructuring efforts.”
The resignations come about three weeks after the telephone services and infrastructure provider filed for Chapter 11 protection with the U.S. Bankruptcy Court for the District of Delaware in the midst of class-action lawsuits, service complaints and prior management turmoil.
President and Chief Operating Officer William S. Beans Jr., Executive Vice President and Chief Financial Officer Harry Herbst, Executive Vice President of Government and External Affairs Cindy Schonhaut and Executive Vice President of People Services Carla J. Wolin all resigned Monday.
“I understand it is difficult to accept this change on a personal level for those who have worked closely with the team members leaving,” said Randall E. Curran, chief executive officer. “I have complete confidence in ICG’s employees and their ability to carry on and support the company’s leadership as we transition to a more direct chain of command.”
ICG has been working to streamline costs and enhance quality of service since mid-September when it was hit with serious network outages. The day after the outages, Chief Executive Officer and Chairman Carl E. Vogel and board members Gary S. Howard and Thomas O. Hicks, all of whom had held their positions for less than a month, stepped down.
In light of the latest batch of resignations, ICG’s day-to-day operations will be handled by Curran and Executive Vice President of Operations Mike Callet, with the support of David Hurtado, senior vice president of Telephony Operations, Darlinda Coe, senior vice president of Network Support, and Gary Lindgren, senior vice president of Engineering. Beans will stay with ICG’s board to further support the company as it continues with its financial restructuring. The company said it “anticipates, and looks forward to, Herbst, Schonhaut and Wolin consulting for ICG on an as-needed basis.”
“Bill has been highly supportive of me and the organization at every level,” Curran said. “I applaud Bill, Harry, Cindy, and Carla for their many contributions to ICG during their tenure and appreciate their cooperation with this transition.”
ICG has promoted Rich Fish, senior vice president of Finance, to executive vice president and chief financial officer. Gayle Landis, vice president of People Services, was promoted to senior vice president. LaCharles Keesee, vice president of Government and External Affairs, was also promoted to senior vice president. Fish and Landis will report directly to Curran while Kessee will report to ICG’s General Counsel Bernie Zuroff.
Also, Senior Vice President of Sales Bob Athey, Senior Vice President of Marketing Kim Gordon, Vice President of Customer Care Brian Cato and Chief Information Officer and Senior Vice President of Information Systems Jack Campbell will now report directly to Curran.
Following its filing for Chapter 11, ICG secured a $350 million loan from Chase Manhattan Bank — $200 million of the loan was available immediately while the remaining $150 million was contingent on the satisfaction of certain conditions. At the time ICG said it had about $160 million in cash on hand.