LINCOLNSHIRE, Ill.-Wireless data carrier Motient Corp. announced its board of directors replaced the company’s current president and chief executive officer with a consulting firm that will look at ways to “significantly restructure” the company to reduce its cash requirements.
In filings with the Securities and Exchange Commission, Motient said it replaced President and CEO Walter Purnell with Communications Technology Advisors L.L.C., a consulting firm with experience in restructuring companies. Motient said CTA will act as its Chief Restructuring Entity and will advise it on various ways to greatly reduce its cash operating requirements. Motient said it will install a new CEO after the advisory firm makes its restructuring recommendations.
Dan Croft, Motient’s senior vice president of marketing and business development, said the company’s board decided to replace Purnell following disagreements over the company’s future. He said the rest of Motient’s senior executives will report to CTA.
“The board recognized that it wanted to evaluate a range of new strategies for the company, primarily to focus on reducing expenses,” Croft said.
Croft said the company is evaluating various restructuring strategies, but that no decisions have yet been made.
Motient for years has been struggling with decreasing revenues as the nation’s major wireless voice carriers have launched enhanced data networks. The company emerged from bankruptcy in 2002.
Motient also said it plans to release its restated financial filings for 2000, 2001 and 2002 within the next two months. The company previously announced it was working to restate its earnings during those years.
