NYSE Non-Compliance Notifications Issued
In order to remain listed at the New York Stock Exchange, companies must maintain a closing stock price of $1 per share, failure to do so over a 30 day period may result in the NYSE delisting the company. The PMI Group, mortgage insurers based in Walnut Creek California, reported recently that it had received a notification from the NYSE that it faces the possibility of being de-listed. The company has six months, or until its next annual shareholder meeting, to rectify the situation to avoid suspension and delisting procedures. The PMI Group reported notifying the exchange that it will make every effort to resolve the problem. In 2007, prior to the housing and financial crisis, PMI shares exceeded $50 per share, but the company has posted $3.5 billion in losses since then.
Based in Troy, Michigan, Flagstar Bancorp has reported being notified by the New York Stock Exchange that the bank faces the possibility of being de-listed due to its failure to meet the $1 share price criteria. The share price has remained below $1 since it announced its plans on July 27 to sell twenty-seven of its branch offices to PNC Financial Services Group. On Wednesday Flagstar closed at 60 cents per share. It reportedly has until February 18 to rectify the situation.
Other companies to receive non-compliance notices from the New York Stock Exchange include General Maritime Corporation, Lee Enterprises, and China Education Alliance. Moreover, Allied Irish Banks reported its resolve to delist its American Depositary Shares from the NYSE, and following the appropriate steps, it would terminate the registration of its securities with the SEC. The NYSE also reported the delisting of the American Depository Shares of Longtop Financial Technologies following the failure of the Chinese software company to respond to delisting warnings.