Less than a year ago, Dan Och blew up his embattled-but-recovering firm’s succession plan, mostly to stick it to the former waterskiing instructor he’d installed as his number two and who was getting a little big for his wetsuit. And also because he could, as he’d not yet acceded to the board and Jimmy Levin’s demand that he give up his controlling stake in the company.
Having put Levin in his place—former Credit Suisse executive Robert Shafir succeeded Och as CEO in January, and Och plans to retire as chairman in March—Och is ready to do the thing Levin wanted him to do last year, and give up his controlling stake in the firm. Which Och is more than happy to do now that it’s basically worthless and the shares require a 10-to-one reverse split to avoid becoming pink sheets.
Och-Ziff said Thursday that Och-Ziff’s founder and several former managing directors would sell 35% of their shares to Och-Ziff’s executive managing directors in the form of a new share class. Mr. Och also intends to withdraw a portion of his money from Och-Ziff funds….
Och-Ziff said it would ask current and former executive managing directors to temporarily forgo distributions on their common shares to help pay down its debt, though public shareholders will continue to receive distributions…. Och-Ziff also plans to change its tax classification to a corporation from a partnership by the end of December….