BARCELONA—As expected, Private Media Group today filed an SEC-required 8K form announcing the latest news out of the Nevada District Court as well as the appointment of new board directors and officers. As previously reported, the court confirmed the outcome of vote held the January 11, 2012 during the annual shareholders meeting, approved the election of the new board, and dissolved the court's preliminary injunction filed Nov. 17, 2010. It also "clarified that even though the receivership has not been terminated, the newly elected Board of Directors controls the day-to-day operations of the Company," according to the announcement.
The 8K also included the news that two new board members, one of whom will chair the board, will join the five already named. The two new members, Michael Kotov and John Wirt, will join Eric Johnson, Anna Maksimova, Charles Prast, Ilan Bunimovitz, Michael Martinez.
"Mr. Wirt and Mr. Kotov have been appointed to the audit committee of the Board of Directors, with Mr. Wirt serving as chairman," the 8K continued. "After these appointments, the Company’s audit committee will consist of Mr. Wirt (chairman), Mr. Kotov and Michael Martinez.
"Mr. Kotov has also been appointed to the compensation committee of the Board of Directors," it added. "After this appointment, the Company’s compensation committee will consist of Mr. Martinez (chairman), Mr. Kotov and Anna Maksimova."
The 8K also confirms the already reported news that former Private CEO Charles Prast, 45, has been "appointed by the Board of Directors as the Company’s President, Chief Executive Officer and Interim Chief Financial Officer. Mr. Prast replaces Eric Johnson, who had been carrying out the responsibilities of the Company’s principal executive officer and principal financial officer. Mr. Prast’s compensation for these roles has not yet been determined." The board also officially terminated Berth Milton as Private president and CEO. He had been on indefinite suspension since December 2011.
"I am grateful to have been elected to the position of CEO and am looking forward to the challenges ahead of us," Prast told AVN. "The changing of the guard at Private is a big win for the adult industry in one aspect. Investors who were concerned about putting money to work in the industry due to a unwarranted but poor perception of its business ethics now have a clear signal that there is legal recourse available to them. The adult business is subject to the same laws and regulations as any business and the recognition of creditor and shareholder rights in the case of Private is a welcome signal that good corporate governance is applicable regardless of the nature of the business."
A bio for Prast was included with the filing:
"Mr. Prast is an industry veteran with over 10 years experience in adult digital media," it reads. "Since 2008, Mr. Prast has been focused on providing adult media, interactive entertainment, intellectual property and debt obligation advisory services to various companies. He has served as a Senior VP of NASDAQ listed New Frontier Media, Inc., the largest U.S. adult broadcaster, and as an adviser to the board of directors of Beate Uhse AG and numerous public and private companies, creditors and investors. From June 2005 until late 2008, Mr. Prast served as a Director and CEO of NASDAQ listed Interactive Television Networks, Inc. an IPTV provider. Mr. Prast previously served as President and CEO of the Company during 2002 and 2003. Prior to joining the Company in 2002, Mr. Prast was a senior corporate financier with Commerzbank Securities in London. Mr. Prast received a B.A. degree from Bates College in 1987."