DETROIT (Bloomberg) -- Visteon Corp., the auto supplier that exited bankruptcy in October, said William Redmond Jr. will resign from the board because he disagreed with the company's handling of nominations for new directors.
The resignation is effective May 20, according to a regulatory filing today. Visteon said Wednesday that it would appoint two new directors by Aug. 1 from recommendations made by shareholder Alden Global Distressed Opportunities Master Fund LP. One of the new members will replace Redmond, Visteon said in the statement.
Visteon planned to retain legal counsel and public-relations firms to "gird for a proxy fight" if Alden denied a proposal to hold off on adding the two new directors in September, after its annual meeting, Redmond said in a May 8 letter to the board that was included in today's filing.
With the announcement of the August appointments, Alden agreed to a "standstill" period.
"There are no winners in this 'fight,' with the biggest loser being our collective shareholder value, given the distraction of this, and its toll on management and the board's time," Redmond said in the letter.
"We are at this place as a result of poor handling of the shareholders by management first, and the majority of the board second, by not causing responsiveness and transparency to be management's mantra with shareholders versus disregard and disingenuous lip service."
Alden is not a "lone voice in the wilderness," and it would be "irresponsible" of Visteon to spend money on battling the "reasonable agenda" put forth by Alden, Redmond said.
Visteon said in the filing that it "welcomes director recommendations and other constructive input from its shareholders and believes that, through an open dialogue, it reached an agreement with Alden that is consistent with the best interests of all of its shareholders."