Cape Fear Bank, Koury settle proxy battle; annual meeting postponed

By Lisa Kerner

Charlotte, N.C., Aug. 18 - Cape Fear Bank Corp. said it reached an agreement with a group led by investor Maurice J. Koury to end their proxy battle.

As a result, Cape Fear's annual meeting of shareholders scheduled for Aug. 19 will be postponed, with a new meeting to be scheduled in the coming weeks, a Cape Fear news release said.

Koury's group and Cape Fear's board agreed to reconstitute the board of directors immediately with the following individuals: Walter Lee Crouch Jr., Becky Parker O'Daniell, Craig S. Relan, Walter O. Winter, David Lucht, James S. Mahan III, Mort Neblett and Scott C. Sullivan.

Each of the individuals, along with a ninth, agreed-upon independent director, will be nominated at the rescheduled annual meeting, Cape Fear noted.

"This resolution will allow us to put the proxy contest behind us and focus on our customers, employees and community," Cape Fear vice chairman Crouch said in the release.

According to Koury, his campaign for change at Cape Fear was never about control but rather was about "protecting and enhancing shareholder value."

As previously reported, Koury nominated for election to the Cape Fear board Lucht, Mahan, Neblett, Sullivan, Milt Petty, Haywood Cochrane Jr. and Robert Isser.

Koury reported an 8.82% stake in the Wilmington, N.C., bank holding company on July 9.

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