PERTH, Australia -- Australian entrepreneur Alan Bond has resigned as chairman and director of Bond Corporation Holdings Ltd., it was announced Wednesday.
Peter Lucas has been appointed to succeed Bond as chairman, BCH said. The company, which Bond founded, also said directors Tony Oates and Peter Mitchell have resigned.
However, Bond, Oates and Mitchell will act as consultants to BCH until the sale of its brewery operations and capital restructuring is completed, the company said.
'The market will be aware, from Mr. Bond's announcement to Bond Corporation Holding's European bondholders (July 20), that he has been considering this course of action for some time,' a statement released by the company said.
At its height, Bond's empire operated breweries both in Australia and overseas, aand also owned media, property and mining interests.
Over the past two years, however, BCH's debt that has approached $8 billion, has made bankers wary to lend the company additional funds. Banks finally forced the company into a virtual fire sale of its assets.
BCH's fortunes were at their highest shortly after the 1987 global stock market decline. In fiscal 1987-88, BCH posted a profit of $330 million and had assets of over $7 billion.
Bond's problems began in 1988 when he launched a takeover bid for British congomlerate Lonrho PLC of London. R.W. 'Tiny' Rowland, Lonrho's managing director and chief executive, issued a 93-page report declaring BCH technically insolvent with debts of $11.5 billion.
As bankers reassessed BCH's ability to service its debt, Bond came under pressure from other fronts.
Bond battled with the Australian Broadcasting Tribunal over his control of a televison network, and several of his business deals led to controversy when they were investigated by the National Companies and Securities commission -- the Australian equivalent of the U.S. Securities and Exchange Commission.
BCH reported a $803 milllion loss for fiscal 1988-89, at the time the largest loss recorded in Australian corporate history.
The company is currently negotiating to sell its brewing assets to subsidiary Bell Resources Ltd. and New Zealand brewer Lion Nathan.
However, the plan has yet to receive final approval from both U.S. bondholders, who are owed $510 million, and European bond holders.
