Catalyst CEO, CFO resign, clearing the way for hedge fund to gain more control
Under the terms of the control change agreement, Horner and Leverton are entitled to receive payments totalling $4.8 million and $1.6 million, respectively.
'I think they saw the writing on the wall with Third Avenue, and they expected Third Avenue to replace the executive team,' said Paul Quinn, an analyst with Salman Partners.
'Under their contract, they have a very good exit strategy for both the CEO and the CFO, so they walk away with lots of money.'
That plan will likely include job cuts, although those aren't likely until 2008 because of labour contracts currently in place, Quinn added.