Wednesday, October 04, 2006

Peter Luke: More on DeVos and Alterra

The reason I like Luke is he puts things in a very concise manner that is easy to understand. Here is something to keep in mind the next time Dick tries to claim he "didn't have control" of Alterra.

DeVos responded then and reiterated Tuesday he and his wife, Betsy, were passive investors in Alterra, holding less than 1 percent of the company's common stock. The investment ended when Alterra began bankruptcy proceedings in 2003, he said.

DeVos added he became aware "just recently" of the "challenges and allegations" regarding patient care at Alterra from 2000 through 2002.

Common-stock ownership aside, DeVos, members of his family and family associates controlled 91 percent of a separate May 2000 issue of debt instruments designed to keep the company afloat, said Mark Brewer, Michigan Democratic Party chairman.

Citing federal Securities and Exchange Commission (SEC) documents, Brewer said the DeVoses and investors close to them appointed four of the corporation's nine directors, effectively giving the DeVos family control over Alterra's board of directors and responsibility of facility operations.

Even though they were in the minority, those four directors had veto powers over board decisions because the votes of at least two of THEM were required for any motions to pass.

The capitalization of "THEM" is either a typo on the Press' part or Luke did it intentionally.

DeVos had control. Not only did he have the leverage on the debt that kept Alterra in business, he had control of the board of directors and responsibility for operations.

The "D" in "DeVos" stands for deceptive. He hid his involvement with Alterra in the first place, now he is trying to hide just how much power he had so he can duck responsibility for this failed business and the problems it had, problems that he could have done something about.

DeVos didn't "get it done" at all with Alterra.

As usual, the TV news media is not getting this at all- playing DeVos' presser from yesterday and Alterra's response today. No mention of these facts because it is too complicated to put into a 1 minute story.