Alpharel Founder Michael McGovern Loses Vice Chairman Post; Proxy Battle Under Way

For the second time in four months, Alpharel has ousted its founder from an executive position. Michael McGovern, who started the Camarillo data storage firm in 1981, was removed as vice chairman of the company in late March, according to a filing with the Securities and Exchange Commission.

George Bermant, McGovern’s attorney, attributes this latest dismissal to a proxy battle McGovern has launched to regain control of the troubled company. McGovern was fired as the company’s chairman in December, but was later reinstated to the post of vice chairman.

“The board of directors of Alpharel Inc. removed Mr. McGovern from the office of vice-chairman of the board of directors of the company, terminated his salary and all other compensation and benefits . . . and admonished him to have ‘no contact or communications regarding the affairs and operations of the company . . . .’ ” according to the filing.

The proxy fight for shareholders’ votes to determine control of the company is scheduled for May. Chairman Gene Holloway said the board of directors will oppose McGovern’s return.

Last month, Alpharel reported it had lost in excess of $9 million on revenue of about $12 million for the fiscal year ended Dec. 31, 1987.