Advanced Marketing Services, the San Diego-based book distributor that filed for Chapter 11 bankruptcy protection Dec. 29, said that recently appointed director Robert Robotti resigned from the board Jan. 16.
Robotti, managing member of Ravenswood Management Co. LLC, a New York-based hedge fund, was appointed to the board in November after threatening proxy fight with the board.
According to an AMS statement, Robotti resigned because he disagreed with the board’s decision to proceed with the annual shareholders meeting on Jan. 24 as previously scheduled.
Robotti wanted to reschedule the meeting at a later date to allow shareholders to nominate directors and bring other business before the meeting, according to AMS.
AMS Chairman Robert Bartlett said the company announced the annual meeting date in October, and the board determined it is in the best interests of the firm to proceed with the meeting as scheduled.
Robotti is the company’s largest shareholder and holds about 7 percent of the outstanding stock.
AMS has been reeling for more than three years since a federal probe begun in 2003 into an accounting fraud involving false reporting of revenue was uncovered. Three executives have pleaded guilty and have been sentenced in the case.
, Mike Allen