Delta-T fires founder from company
January 10, 2008
BY Sarah Smith
Web exclusive posted Jan. 25, 2008, at 10:26 a.m. CST
Bateman Litwin NV, which acquired ethanol process technology provider Delta-T Corp. in July 2007, has released its founder Bibb Swain.
Swain started the company nearly two decades ago. It has been involved in 120 projects over five continents, according to Delta-T's Web site. Swain and his son Rob sold the company to Dutch energy giant Bateman Litwin NV. The sale has devolved into a lawsuit filed by Bateman alleging the Swains misrepresented Delta-T's financial picture and that the parent company will be forced to spend millions of dollars to get the company back on track financially.
Bateman paid the Swains $45 million in cash and nearly 12 million shares of stock. "The purchase price was conditional upon Delta-T's performance, and upon representations and warranties made by the Swains as to the financial condition of Delta-T," the complaint stated. Bateman is also seeking a return of the stock and damages that exceed the purchase price because of problems with other contractors and suppliers they were unaware of at the time of the sale.
Rob Swain was fired as president of Delta-T on Oct. 8, 2007. Bibb Swain, who had been retained as the company's chief technology officer, was fired earlier this week. The Swains' attorney Andrew Morris said both men had expressed a desire to continue their involvement in the company at the time of the sale. Morris, who is due to file the defendants' response in February, said both men "acted honorably" during the sale and will "vehemently deny any wrongdoing."
Delta-T said it had no comment on the latest firing but confirmed that "Bibb Swain is no longer part of this company."
The new president and chief executive officer is Leslie J. Ward. On Jan. 25, Ward announced the completion of the Global Ethanol plant in Riga, Mich. In that project, Delta-T had partnered with Colorado-based contractor The Industrial Co. TIC's projects with Delta-T are among some of the causes of action. Bateman alleges that the two companies' nine joint ventures stood to lose money that would have cost Delta-T $35 million, instead of garnering a substantial profit as forecasted by the Swains. TIC has declined to comment due to the litigation. Ward's announcement stated that Delta-T has been awarded a contract to immediately expand Global Ethanol's 57 MMgy capacity to 89 MMgy.
Additional details on the Bateman Litwin lawsuit will be printed in the March EPM.
Bateman Litwin NV, which acquired ethanol process technology provider Delta-T Corp. in July 2007, has released its founder Bibb Swain.
Swain started the company nearly two decades ago. It has been involved in 120 projects over five continents, according to Delta-T's Web site. Swain and his son Rob sold the company to Dutch energy giant Bateman Litwin NV. The sale has devolved into a lawsuit filed by Bateman alleging the Swains misrepresented Delta-T's financial picture and that the parent company will be forced to spend millions of dollars to get the company back on track financially.
Bateman paid the Swains $45 million in cash and nearly 12 million shares of stock. "The purchase price was conditional upon Delta-T's performance, and upon representations and warranties made by the Swains as to the financial condition of Delta-T," the complaint stated. Bateman is also seeking a return of the stock and damages that exceed the purchase price because of problems with other contractors and suppliers they were unaware of at the time of the sale.
Rob Swain was fired as president of Delta-T on Oct. 8, 2007. Bibb Swain, who had been retained as the company's chief technology officer, was fired earlier this week. The Swains' attorney Andrew Morris said both men had expressed a desire to continue their involvement in the company at the time of the sale. Morris, who is due to file the defendants' response in February, said both men "acted honorably" during the sale and will "vehemently deny any wrongdoing."
Delta-T said it had no comment on the latest firing but confirmed that "Bibb Swain is no longer part of this company."
The new president and chief executive officer is Leslie J. Ward. On Jan. 25, Ward announced the completion of the Global Ethanol plant in Riga, Mich. In that project, Delta-T had partnered with Colorado-based contractor The Industrial Co. TIC's projects with Delta-T are among some of the causes of action. Bateman alleges that the two companies' nine joint ventures stood to lose money that would have cost Delta-T $35 million, instead of garnering a substantial profit as forecasted by the Swains. TIC has declined to comment due to the litigation. Ward's announcement stated that Delta-T has been awarded a contract to immediately expand Global Ethanol's 57 MMgy capacity to 89 MMgy.
Additional details on the Bateman Litwin lawsuit will be printed in the March EPM.
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