Toronto-based specialty lender Callidus Capital Corp announced on Monday that consultant and interim Chief Executive Officer Patrick Dalton had resigned, providing no reason why.
Dalton’s departure comes about four months after he took over for Newton Glassman, who the company said stepped down for medical reasons.
Callidus is a core holding for Glassman’s Catalyst Capital Group, one of the largest private equity firms in Canada. Catalyst had hoped to sell Callidus for between $18 and $22 a share, but the stock now trades around $1.70.
Callidus is one of several holdings that Catalyst has struggled to sell, as noted in a March 2018 Reuters special report.
Callidus, which specializes in loans to troubled companies avoided by banks, said that Dalton’s interim CEO duties “have been re-assigned to the existing Callidus management team.” A representative did not immediately respond to a request for additional detail.
Dalton, a former Apollo Global Management executive and turnaround specialist for investment firms, took over for Glassman on November 5.
Dalton was one of two senior executives brought in to “support further growth of its loan portfolio and to continue unlocking value from its portfolio of operating companies” following Glassman’s departure, Callidus said on October 29.
Callidus said in August that it had discontinued the use of an unusual “yield enhancement” accounting technique, highlighted by Reuters in its story, after comments by the Ontario Securities Commission, which put the company on its “Refilings and Errors List” for three years.
(Reporting by Lawrence Delevingne in New York; editing by Jonathan Oatis)
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