Los Angeles-Rentech Inc. said Jan. 11 that it has advised Sherwood Investments that the Rentech board of directors has unanimously concluded that this is not the appropriate time to sell the company. As a result, Rentech said its board is not at this time prepared to engage in negotiations with Sherwood or any other party regarding a possible sale transaction. In reaching this determination, Rentech said the board carefully considered Sherwood’s letters in several recent meetings. In the course of that consideration, the board sought the advice of its professional advisors, and the independent directors also met in executive session without management present. During this process the board considered, among other things, its view of the future prospects of the company and the potential upside for stockholders to be achieved upon proving the commercial viability of Rentech’s technology. The board unanimously concluded that Rentech’s policy is to execute on its business plan and not to pursue sale proposals at this time. In addition to Sherwood, Pentagon Capital Investments PLC, another Rentech shareholder, has also indicated that Rentech should consider a sale (GM Dec. 17, 2007, p. 1).
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