GTSI (NASDAQ: GTSI) will resume business with government following the lifting of a suspension imposed by the SBA on October 1.
“The lifting of the suspension gives GTSI, its vendors and clients the ability to move forward,” said John Toups, chairman of GTSI’s board of directors. “The cloud of uncertainty that was hanging over our employees, creditors, shareholders and partners has been removed, and we can get back to the business of serving our government clients. We sincerely appreciate the support expressed by our vendor community, especially our credit facility partner Castle Pines Capital.”
The firm also announced the resignations of CEO Scott Friedlander and General Counsel Charles DeLeon.
“This was extraordinarily unselfish action by Scott and Charles,” said Toupes. “These two men have been instrumental helping GTSI achieve so many of our strategic objectives.”
The board has named Senior VP Sandra Gillespie and CFO Peter Whitfield, to serve as co-CEOs while the firm looks for a replacement.
“Now that the SBA has lifted the suspension we are looking forward to getting back to helping our customers meet their mission,” said Gillespie. “As a result of the action taken by the SBA, we will be enhancing our compliance activities and implementing a rigorous process to regularly report to the SBA on our actions. For nearly three decades, government has come to rely on GTSI, and our employees are ready to get back to work and prove that trust was not misplaced.”