No Comments on Boesky Resignation
Officials of Northview Corp., a publicly traded company the last we checked, maintained a mum’s-the-word attitude Monday about the resignation of Chairman Ivan Boesky, the Wall Street arbitrageur who was hit with a $100-million fine by the Securities and Exchange Commission on Friday.
Gerald M. Kadish, president of Northview’s hotel division here (once called Vagabond Hotels), would not comment on Boesky, the lack of a Northview chairman or when a replacement would be selected.
Also keeping a low profile Monday were several other Northview directors, whose offices issued terse “no comments” to a curious reporter.
Bill Ward, a longtime Boesky associate and former partner in the accounting firm of Peat, Marwick & Mitchell here, could not be reached for comment. Ward is the designated spokesman in the wake of Boesky’s resignation, which includes placing his 193,000-plus shares of Northview stock--or nearly 6% of the total outstanding--in an escrow account.
“Ward is directing” things, according to one Northview source, who described the mood at the firm’s Scripps Ranch corporate offices as one of “puzzlement.”
This source said: “Who knows what will happen next? It’s anybody’s guess.”
How important is Boesky’s investment activity at Northview? Plenty. Boesky’s arbitrage machinations accounted for more than 60% of Northview’s $5.5 million in net profits for the six months ended June 30, according to one Boesky associate.
It’s difficult, if not darn-near impossible, to determine exactly how Boesky’s investment activities affect Northview. Financial documents filed with the SEC simply don’t break out those figures. That fact prompted one Northview employee to muse that “it’s intended that way.”
The market greeted the Boesky resignation with a 1-point drop in Northview stock, to 11 1/2 bid.
Townsend Reconsiders, Returns
It didn’t take car dealer Robert E. Townsend long to change his mind about keeping his post as BSD Bancorp chairman after a meeting Thursday with a handful of fellow BSD directors.
On Friday night, Townsend said he had reconsidered and would withdraw his resignation, which he said was offered because of time pressures.
His chairmanship has now been “restructured,” BSD announced
late Monday, “to allow him to fulfill his duties as chairman while devoting additional time to his enterprises.”
Townsend couldn’t be reached for comment.
As for Robert’s Rules and all, Lynn Caswell, president of Bank of San Diego, BSD’s largest subsidiary, on Monday said that Townsend won’t have to be reelected to the board.
“I’m not sure it’s necessary,” Caswell said. “His resignation was never accepted in the first place.”
Tiebreaker for Fabulous Inns?
It remains uncertain whether the latest Fabulous Inns action will smooth things out or stir up the muck. Regardless, the controversial Mission Valley hotel company last week elected a fifth director--Weston Anson, president of Marketing Trademark Consultants, a licensing agency with offices in La Jolla and New York.
The Fabulous Inns board has been mired in 2-2 deadlocks.
Sun Savings May Jump Ship on Lease
Flagship Federal, nee Sun Savings & Loan, may be looking for new offices.
When regulators shut down Sun last summer, they “repudiated” Sun’s 10-year lease with Nexus Development--25,000 square feet of office space in University City with a monthly price tag of $45,000, according to company sources.
Now, Flagship and Nexus officials are locked in negotiations to work out a new lease. If no agreement can be reached, it’s adios Flagship.
“They put us in a difficult position,” acknowledged Mike Reedy, Nexus president. “We built space out, (and did) special-purpose tenant improvements.”
Nexus also secured its long-term financing based on Sun’s lease. But, alas, the federal government has “the right to repudiate a lease--they have awesome power,” Reedy said.
Flagship officials “haven’t made any final decision whether to move,” according to Ralph Rivet, a Los Angeles consultant to Flagship.
Sun sold the building to Nexus Development last year but took back a lease on the facility for its corporate offices. Sun’s lease called for monthly rent of $1.80 per square foot, dropping to $1.67 after the first year--both higher-than-market figures. Reedy on Monday defended the rent. “We’re 72% leased, all at $1.85 per square foot. So for them to say we’re over market . . . doesn’t jive with what’s happened,” he said.
No decision yet as to where Flagship would move, but sources familiar with the company suggest either Sorrento Valley or Kearny Mesa.
Meanwhile, the Federal Saving & Loan Insurance Corp., which took over Sun’s non-performing assets (read: bad loans) is proceeding on a liquidation course. About 50% of the assets will be liquidated within the first year, according to FSLIC’s George Wallace. The balance will take three to five years to dispose, he said.
Just Another J. David Coincidence
It’s no doubt a coincidence, but the announcement last week that Jerome Morrison will leave his post as partner with the Laventhol & Horwath accountancy firm and become executive vice president of La Costa Hotel and Spa means that virtually all of the top officials of the outside law and accounting firms that advised J. David & Co. have left their jobs.
Last year, Laventhol & Horwath partner Howard Brotman left the firm; earlier this month, he was selected vice president and chief financial officer of SDNB Financial Corp., holding company of San Diego National Bank.
The Rogers & Wells law firm, which worked for J. David, has closed its San Diego office. And First National Bank’s top two executives during its tenure at J. David left within a year of the J. David bankruptcy in February, 1984.
