Marchant explained that "we have reached a major turning point in the transformation of PaperlinX, and the board and I have agreed that it is an opportune moment for me to step down as chief executive. I will therefore be leaving the company at the end of July. I am doing so knowing that we have taken major strides towards dealing with our significant legacy issues, in the midst of exceptionally hostile conditions, and that we are now on the right path. This is entirely thanks to the excellent people in PaperlinX who have shown extraordinary courage and determination in overcoming the challenges of the last few years."
Chairman of PaperlinX, Harry Boon, noted that "I would like to sincerely thank Toby for his tireless dedication over 15 years to PaperlinX and its predecessors. Most recently, Toby successfully led our team through a lengthy and complex Strategic Review during exceptionally difficult circumstances. Having secured sufficient near-term liquidity for the group, we are now able to focus on the timely delivery of the previously announced restructuring program and to seek additional opportunities for cost reduction and growth in diversified products."
Boon added that "we are pleased to announce that Dave Allen has accepted the role of Interim chief executive. Dave is currently EVP of PaperlinX with responsibility for the U.K., Ireland, and Canada. Dave joined PaperlinX in 2004 and was previously managing director of the Robert Horne Group in the U.K. We have initiated a search for a permanent CEO, and will review both external and internal candidates. We have every confidence that Dave Allen and Richard Barfield will drive the restructuring program during the search process."
In accordance with terms of his employment contract and the limits imposed by the Corporations Act, Marchant will receive a termination payment of 12 months total fixed remuneration in lieu of notice, plus statutory entitlements such as outstanding annual leave.
TAPPI
http://www.tappi.org/