COMPANY TOWN : Chairman of Iwerks Resigns in Shake-Up

The executive shake-up at financially ailing Iwerks Entertainment Inc. continued as Stanley Kinsey resigned as chairman and a director of the ride simulation and virtual reality company.

Kinsey had already given up the chief executive position at the Burbank-based company in May, replaced by former Chief Operating Officer Roy Wright. In June, Iwerks replaced its chief financial officer, G. Edward Smith, with Francis Phalen.

Iwerks reported a $13.5-million loss in the fiscal year ended June 30. It has been hurt by competition from such companies as IMAX and from such problems as charges related to its acquisition of Omni Films.

* David B. Wertheimer has been named president of Paramount Digital Entertainment, the newly formed division of the Paramount Television Group. Wertheimer was senior director of entertainment alliances at Oracle Corp.