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Business

Forum gets approval for interim CEO

Tribune Chronicle
POSTED: November 4, 2009

YOUNGSTOWN - Bankruptcy Judge Kay Woods has given Forum Health permission to hire Charles Neumann as its interim chief executive officer, subject to terms.

Woods' order, signed Friday and entered Monday, states Neumann won't be ''indemnified, defended or held harmless by Forum for gross negligence or wanton, willful or intentional misconduct.''

The order follows a declaration by Iain Briggs, managing director of FTI Consulting Inc., which employs Neumann, that Neumann doesn't have any conflicts of interest that could affect his duties at Forum.

Briggs stated FTI represented MBIA Insurance Corp. in guaranteeing some of Forum's bonds but that no personnel involved in that deal are with the firm. Neumann wasn't involved in the transaction, he said.

Forum's unsecured creditors objected at last week's court hearing to the $75,500 Forum would pay FTI for Neumann's services, plus expenses for the Boston-based executive.

Woods said she would approve Neumann's hiring only after a declaration that Neumann has no conflicts of interest and wouldn't be protected from liability for gross neglect.

 
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