Silverstein Vows to be Back
April 28, 2010
Is it "Hasta La Vista" for Leon Silverstein, outgoing
CEO of Arch Aluminum?
Silverstein is more likely to utter "I'll be back" than
the Terminator's other signature phrase.
"Leon told key employees yesterday that he would be leaving,"
said one person with knowledge of the discussion who preferred not
to be identified. "He said the family values he believed in
were not necessarily those shared by Sun Capital, so he was leaving.
He vowed he would be back. He asserted that he has no non-competes
in place that would keep him from doing so."
Silverstein's departure caps a 5-month period since Arch announced
bankruptcy reorganization and its subsequent sale to the investment
firm Sun Capital Partners Inc. Interestingly, the person who was
widely thought to be the original link between the two organizations,
former Arch chief financial officer Mark Kuchenrither, left his
position as vice president of operations of Sun Capital last month
and currently is working at EZCorp, which offers short-term loans
and credit services.
So what really happened?
Industry speculation is just that but centers on Sun Capital's
continued desire to use Silverstein as its liaison to industry companies
and former creditors in the future. "It is general industry
knowledge that Silverstein and other members of Arch's management
team had personally visited a number of former creditors to urge
them to begin working with Arch again," said another. "I
don't think that exactly worked out the way they [Sun] expected."
At press time, Sun Capital was unavailable for comment.
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