# Sunterra Corporation Announces Changes to Senior Management



## Spence (Jun 22, 2006)

LAS VEGAS, NV, Jun 22, 2006 (MARKET WIRE via COMTEX News Network) -- Sunterra Corporation (NASDAQ: SNRR) today announced changes to its senior management team. 

On June 22, 2006, the Board of Directors of the Company directed that Nicholas J. Benson, the Company's President and Chief Executive Officer, take paid administrative leave, to which he agreed, pending the results of the previously disclosed investigation by the Audit and Compliance Committee of the Board into various allegations (including accounting improprieties) made by an individual formerly employed by the Company's Spanish operations and pending the determinations of the Board with respect thereto. Mr. Benson continues to serve as a director of the Company. 

The Board appointed James A. Weissenborn, a current member of the Board, to serve as the Company's interim President and Chief Executive Officer. Mr. Weissenborn has served as a member of the Company's Board since April 2004. Since 1999, Mr. Weissenborn has served as the Managing Partner and President of Mackinac Partners, LLC. Mackinac Partners is currently providing interim management services to the Company with respect to its European operations. Mackinac Partners is a merchant bank that specializes in restructuring and turnaround management, investing, capital markets services, merger and acquisition advisory services, strategic planning services and litigation advisory services. Mr. Weissenborn also served as a Vice President of Sunterra Financial Services from October 2001 to June 2003. 

Steven E. West, the Company's Executive Vice President and Chief Financial Officer, has resigned from the Company effective on June 30, 2006, and as its Chief Financial Officer effective June 22, 2006. Mr. West has been in discussions with another company for the last several weeks and has decided to accept its job offer. 

The Board appointed Robert A. Krawczyk to serve as Chief Financial Officer. Mr. Krawczyk, a Vice President of the Company, is currently serving as the Company's Corporate Controller and Chief Accounting Officer. Mr. Krawczyk has served as Vice President and Corporate Controller of the Company since August 2004 and was named the Chief Accounting Officer in May 2005. Prior to joining the Company, Mr. Krawczyk was employed by Deloitte & Touche LLP from 1995 to August 2004, most recently as a Senior Manager specializing in the timeshare industry.


----------



## pgnewarkboy (Jun 23, 2006)

This does not sound good.


----------



## ragtop (Jun 24, 2006)

Look for Chapter 22 now


----------



## spike (Jun 24, 2006)

Bankrupt AGAIN? I'm shocked! Just shocked.


----------

