Avalon Correctional drops bid for representation on Providence board

By Lisa Kerner

Charlotte, N.C., June 18 - Providence Service Corp. shareholders led by Avalon Correctional Services, Inc. said that while they believe the company needs improved corporate governance, they will not be seeking board representation at this time.

Avalon's nominees, Michael C. Bradley Jr. and retired U.S. Navy captain Brian T. Costello, were not elected to Providence's board of directors on Monday, according to a schedule 13D/A filed with the Securities and Exchange Commission on Thursday.

In the filing, Avalon said it believes its involvement has resulted in "better bylaws for the stockholders, a temporary freeze on executive compensation increases, and an additional independent director on the board."

Avalon has a 17.8% stake in Providence, a Tucson-based provider of home- and community-based social services to government-sponsored clients under programs such as welfare, juvenile justice, Medicaid and corrections.

Oklahoma City-based Avalon owns and operates private community correctional facilities and correctional programming.

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