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Maxim CEO gets emergency hearing on limiting company's exclusivity
By Jeff Pines
Washington, Sept. 29 - Maxim Crane Works' chief executive officer Albert Bove will get his day in court on Oct. 4. Bove asked the U.S. Bankruptcy Court for the Middle District of Pennsylvania Monday to grant him an emergency hearing on reducing or modifying the company's exclusive periods.
The order was filed with the court Tuesday.
Besides being CEO of Pittsburgh-based ACR Management LLC, Maxim's legal name, Bove also runs AmQuip Corp.
Bove contends that with Arthur Innamaroto, an accountant and lawyer, as president, Maxim is being driven into the ground. Innamaroto has been president since 2002. According to Bove, Maxim has lost many key employees because of a hostile and confrontational atmosphere.
Bove alleges Innamaroto has reduced maintenance and employees as the fleet ages, that he has launched lawsuits against customers leading to the loss of major accounts and has cut the marketing budget.
In addition, Bove alleges Innamaroto directed the board to hire or pay family members for work done for the company. According to Bove, Maxim hired Innamaroto's wife as outside counsel, his sister and brother-in-law as in-house attorneys and others.
Another problem is the reorganization plan will not work, Bove said, because its outlook is far too optimistic. He believes that within 12 to 24 months of exiting Chapter 11, Maxim will need to borrow more than its exit facility will provide.
Bove wants Maxim's assets auctioned off, and he and AmQuip are willing to be the stalking horse bidder with a $273 million offer.
Maxim filed for bankruptcy on June 10. Its Chapter 11 case number is 04-27848.
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