Leap Wireless International Shuffles Its Executives

Leap Wireless International Shuffles Its Executives



Telecom: Replacement For Harvey White Likely To Be Named Soon

BY MIKE ALLEN

Still immersed in bankruptcy, San Diego-based Leap Wireless International Inc. announced the departure of its No. 2 executive, President and COO Sue Swenson, and made several other executive changes.






Swenson, who joined Leap in July 1999, voluntarily resigned her position Jan. 9 to pursue other interests, the company said.






Leap spokesman Jim Seines said Swenson was offered a leadership position with “a large, national wireless carrier,” but would not disclose the company. Efforts to reach Swenson were unsuccessful.






In other news, Leap named S. Douglas Hutcheson as executive vice president and chief financial officer. Glenn Umetsu was named executive vice president and chief operating officer. Hutcheson was already serving as Leap’s CFO and was a senior vice president.






Because Swenson resigned before Leap technically emerged from bankruptcy, she will be unable to collect a bonus stipulated in Leap’s reorganization plan as 80 percent of her annual salary of $386,250, or $309,000.






Although he’s already announced his retirement, Chairman and CEO Harvey White remains at the helm. Seines said a search committee has been interviewing candidates to replace White and should make a decision early this year.






Leap, which filed for Chapter 11 bankruptcy in April, had its plan confirmed by the bankruptcy court in October, continues to operate its main subsidiary, Cricket Communications, a provider of flat-rate wireless service to 39 markets in 20 states. The service is unavailable in San Diego.






Seines said the main obstacle in Leap’s path before it emerges from bankruptcy was the approval by the Federal Communications Commission for the firm’s change of control of the company.






“We hope the FCC will give us the required approval by the second quarter but we just can’t accurately predict when that’s going to be,” he said.






Stockholders Lose Out






According to the company’s disclosure statement, the holders of the firm’s vendor debt will be the main owners of the new Leap equity once it emerges from bankruptcy. They were identified as Goldman Sachs