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Butler in default, replaces CEO

March 27, 2009

Butler International Inc. (OTCBB: BUTL.PK) replaced its chairman and CEO, according to a filing on Thursday with the U.S. Securities and Exchange Commission. Butler was also in default on a loan, but had reached an agreement with its lender, according to information in the same filing.

The reports come as the Fort Lauderdale FL-based engineering services and staffing company is in the process of being sold to Koosharem Corp., parent company of The Select Family of Companies.

Edward Kopko, who had served as Butler's chairman, CEO and president, resigned in a March 6 e-mail, included in the filing. Kopko claimed in the e-mail that the company didn't pay $1.4 million owed him and failed to pay a weekly salary among other things.

Butler named Ronald Uyematsu as CEO and president and Thomas Comeau as chairman of the board. Uyematsu has served on the board since 2004 and is founder and principal of Agdenes Media LLC, a documentary film production and distribution company, according to the filing. Uyematsu has also worked in the finance industry. Comeau had served as president of Swissport Fueling, a subsidiary of the Swiss Air Group.

The company also announced it reached a forbearance agreement with lender General Electric Capital Corp. after it defaulted on a loan. The forbearance agreement runs through April 20, and Butler must present an agreement with Koosharem as part of the deal.

In another development, Butler reported that Caterpillar Inc. ended a master consulting agreement where Butler had provided it with staffing. Butler said its financial condition may have been what prompted Caterpillar to end the contract, according to the filing.