WORLDTEX EXEC OUT
NEW YORK — Citing a change in control of the company, Worldtex Inc.’s chief financial officer, Marty Kittrell, resigned on Friday and claimed the right to a $670,000 severance benefit.
This follows the disclosure in late February that EGS Partners LLC and its affiliates have acquired a 34.3 percent stake in the company, triggering Worldtex’s poison pill shareholder rights clause and giving Kittrell and Barry Setzer, chairman, president and chief executive officer, the right to terminate their contracts with the company.
However, the company has reached an agreement in principle with Setzer for him to stay on board and settle his claim for a severance benefit. The company also said in a statement that it “has taken the position that Mr. Kittrell is not entitled to such severance benefit.”
Last week, Worldtex said it had reached a 10-year standstill agreement with EGS.