SANDUSKY - As expected, Cedar Fair LP announced Tuesday morning that it has added two members to its board, Eric Affeldt and John M. Scott III who are part of an agreement with the company's largest shareholder.
The announcement came the day after the Sandusky amusement park company's annual shareholders meeting at which investors expressed anger and frustration over the suspended dividend, executive pay, and other matters.
Mr. Affeldt is president and chief executive officer of ClubCorp Inc., a Dallas firms which owns and operates golf courses, and previously was a principal at private equity firm KSL Capital Partners, which purchased ClubCorp in 2006.
Mr. Scott is president and chief executive officer of Rosewood Hotels & Resorts, and previously was an executive at private equity real estate fund Maritz, Wolff & Co.
Both of their terms began Monday and will expire in 2013.
The additions to the board came after Q Funding III LP and Q4 Funding LP, which combined own 18 percent of Cedar Fair's stock, insisted on having more input into the operations of the company. The new members were nominated by a consultant but were to be agreed to by Q Funding and Cedar Fair officials.
Q Funding publicly opposed Cedar Fair's proposed takeover by Apollo Global Management this year, and the $2.4 billion deal was withdrawn.
Cedar Fair's board now has nine members, but by next year's annual shareholders meeting, two existing board members whose terms expire will no longer be directors.
Cedar Fair, which owns Cedar Point and 16 other amusement and water parks nationwide and in Canada, is trying to restructure its $1.6 billion debt, the terms of which have prevented it since late last year of paying a dividend. Q Funding officials have asked Cedar Fair to quickly restore a dividend.