SAN DIEGO — Sun Savings & Loan Assn. on Wednesday said it has entered into an agreement with state and federal regulators that will limit asset and liability growth until the troubled company can boost its sagging net worth above regulatory minimums.
Concurrently, two Sun directors who had supported ousted chairman Daniel Dierdorff announced their resignations.
Directors Walter Dozier and Richard Raimann said they resigned because other commitments prevented them from adequately monitoring the operating-restriction agreement with regulators.
Sun officials, however, played down the importance of the agreement, leading to speculation that the Dozier and Raimann resignations were part of a continuing turnover of directors with ties to Dierdorff.
Sun will not replace the departing directors and will operate with only five board members, only two of whom have past ties to Dierdorff. It will mark the first time that a board majority hasn't had ties to Dierdorff since the former chairman's resignation in October, 1984.
In November, director Clifford Lindroth, also a Dierdorff supporter, resigned "to pursue other business activities." And in June, Orange County agriculture executive Tad Fujita, also a Dierdorff supporter, resigned after it was revealed that he was convicted on two felony counts of conspiracy and attempted grand theft in 1973.
Sun has sued Dierdorff for alleged fraud and mismanagement, and Dierdorff has countersued the company. In addition, Dierdorff is under federal grand jury investigation for alleged financial improprieties.
Sun's current operating policies are "basically similar" to the agreement guidelines, according to Sun President and Chief Executive John McEwan.
Sun, McEwan said, has reduced its total asset base by nearly $33 million through Sept. 30, 1985. Assets now total about $410 million.
Meanwhile, McEwan reported that plans for a $7-million cash infusion from New York financier Van D. Greenfield now hinges on completion of Sun's year-end audit, which is expected in the next few weeks.
Negotiations with Greenfield, developer Victor Fargo and "several interested investors" are continuing, McEwan said.
If the Greenfield infusion is completed, Greenfield would have undisputed control over Sun. In addition, the company's net worth would be boosted to nearly $12.5 million, slightly above the 3% net worth-to-assets ratio required by regulators.