Diamond Grower Scio Interim Execs Resign Shortly After Appointment

After only a week or so on the job, Scio Diamond interim CEO Gerald McGuire and interim chief financial officer Douglas Walker have resigned from those posts, sources tell JCK.

Board chairman Bernard McPheely says that the current board is still figuring out the company’s leadership.

“The new board is looking at all the different possibilites, trying to get our hands around this phenomenal opportunity,” he says, pledging an announcement soon.

McGuire and Walker were appointed on June 16 following the termination of CEO Michael W. McMahon and CFO Jonathan M. Pfohl. Save Scio, the group of dissident shareholders, including McPheely, that now controls four positions on the company’s board, had expressed support for McMahon in the past.

The company also released details of the settlement agreement with members of the former board of directors—which include longtime directors Robert Linares, founder of Scio’s predecessor Apollo; his son-in-law Edward Adams, who served as board chairman; and Antwerp Diamond Bank veteran Theo Strous, who resigned on June 23. The settlement calls for an end to the shareholder lawsuits against the company, as well as Save Scio’s proxy solicitation, and a “poison pill” enacted by the board. 

JCK News Director