New World Restaurant Serves Pink Slip

Company says CFO terminated "with cause." Also: Metromedia Fiber Network ousts its CFO after defaulting on debt, Omtool names new finance chief.
Craig SchneiderApril 3, 2002

New World Restaurant Group, Inc. announced that it has terminated “with cause” CFO Jerold Novack. No additional information was provided… Novack joined as vice president of finance in 1994 and was appointed CFO in January 1999… Board also assigned CEO Anthony Wedo to additional role of chairman after Ramin Kamfar resigned to “pursue other business interests.” New World also said it paid Kamfar $1.45 million “in connection with his departure from the company.” Wedo noted that company has started a search for a new CFO… Company also filed a Form 12b-25, which extends until April 16 the time to file its Form 10-K for the fiscal year ended January 1, in order to complete its annual audit. Company expects to report EBITDA of $10.5 million for the fourth quarter of 2001.

Metromedia Fiber Network ousted CFO Randall Lay, along with CEO Mark Spagnolo, on Monday. Big day for Metromedia: company also said it defaulted on its debt on Monday… Board of directors named Robert Doherty as executive vice president, finance and administration “to guide the company through its previously announced efforts to seek to restructure its indebtedness.” Lay and Spagnolo are said to have left to “pursue other interests.” Most recently, Doherty served as managing director for Salomon Smith Barney’s investment banking division — he headed the east coast communications equipment group… Previously, vice president for PaineWebber’s investment banking division…

Metromedia said that at the close of business on Friday, March 29, an “event of default” occurred on its $231 million 14.0 percent Term Notes due 2007 originally issued to Nortel Networks. Metromedia did not make approximately $8.1 million interest payment.

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Omtool, Ltd. named Timothy Losik as CFO and chief operating officer. He replaces Kira Nelson, who resigned to spend time with her new family. “Kira will continue to work with the company, and we wish her the best with her new twins,” noted Robert Voelk, CEO of Omtool, in a statement… COO is a newly created position.

Losik most recently served as senior vice president of global printed circuit board operations at Sanmina Corp.. Previously, he served as CFO at Hadco Corp., which was purchased by Sanmina in June 2000 for approximately $1.1 billion in Sanmina stock. Losik managed the acquisition, directed two capital offerings and guided the turnaround of a division. Omtool reported a loss of 6 cents per share in its fourth quarter, compared with a 9 cents per share loss in the year-ago period.

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