An inaugural board member since 2004, Melwani’s resignation was tendered just days after a January 25 decision to distribute remaining Foundation shares held by Blackstone affiliates to partners.
David Foley of Blackstone as well as William McCauley and Alex Kreuger of First Reserve, who also gave up shares January 25, will keep their seats on the board to satisfy a request by the company.
“We wish to thank Prakash for his many contributions as one of the original members of our board of directors. We have benefited from his counsel during the structuring and financing of the 2004 leveraged buyout and out transition to a public entity,” said Foundation president James Roberts.
The company filed its initial public offering (IPO) in November 2004 and was listed December 9, 2004.
Foundation was purchased in 2004 after primary stockholders First Reserve, The Blackstone Group and American Metals and Coal International (AMCI) bought the North American assets of privately held RAG Coal International for $US975 million. When Foundation was established, First Reserve Corporation and The Blackstone Group each owned 42% of it while AMCI owned 15%.
In December of last year, Foundation announced the addition of nearly 50 years of coal mining and transportation experience to its board with the appointment of Robert Scharp and P Michael Giftos.
The company owns underground and surface mines in the Powder River Basin, Northern Appalachia, Central Appalachia and the Illinois Basin.
