Irwin Jacobs, longtime captain of Genmar Holdings Inc., is stepping down as the boatmaker heads to a bankruptcy auction.
Jacobs is resigning as CEO, chairman and a director following his public comments about wanting to bid on his own company, Genmar said in a release Monday. Mark Sheffert, Genmar's chief restructuring officer, said the move will eliminate potential conflicts of interest should Jacobs want to participate in the asset sale.
In an interview, Jacobs said he was "fully supportive" of the move. But he wouldn't say whether he'd bid on the company or how much he'd offer.
"I'm keeping all my options open," Jacobs said. "Whatever I decide to do ... I can't do it as CEO and a board member of this company."
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So-called insider bids are subject to higher scrutiny in bankruptcy asset sales, according to attorney Sheryl Toby, a director at the American Bankruptcy Institute.
A stalking horse bidder in the Genmar auction hasn't yet been chosen and the deadline for selecting one is Nov. 18, said Stephen Spencer, a director at Houlihan Lokey Howard & Zukin Capital Inc., which is advising Genmar in bankruptcy.
A source close to the process identified the potential stalking horse bidder as Platinum Equity, a Beverly Hills-based firm that buys distressed companies. Platinum Equity declined to comment.
The issue of the identity of the stalking horse bidder in the Genmar case emerged in bankruptcy court in St. Paul last week when federal Bankruptcy Judge Dennis O'Brien asked whether a potential stalking horse had been identified. Genmar attorney Jim Baillie said yes and that it was "an unrelated party to the debtor."