TORONTO (miningweekly.com) – Metallurgical coal producer Walter Energy could lose its NYSE-listing after the exchange notified the ailing company that its common stock did not currently satisfy one of the exchange's continued listing standards.
The NYSE required the average closing price a share of a listed company's common stock to be at least $1 over a consecutive 30-day trading period. As of Tuesday, the average closing price a share of the company's common stock over the preceding 30-day trading period was $0.99.
Under NYSE rules, the company had six months to regain compliance with the exchange's continued listing standards.
Walter Energy's common stock would continue to be listed and traded on the NYSE during this period, subject to the company's compliance with other continued listing standards.
As required by the NYSE's rules, the company planned to notify the NYSE within ten business days of the receipt of the notice of noncompliance of its intent to cure the deficiency.
The deficiency did not affect Walter Energy's business operations or its Securities and Exchange Commission reporting requirements, and it did not violate any of the company's credit agreements or other debt obligations.
Last year, Walter Energy idled its Canadian operations in the second quarter and, in January, the cash-strapped miner suspended its quarterly dividend on its common stock in an effort to enhance its financial flexibility in the current turbulent metallurgical coal market conditions.
On Friday, the company’s stock was trading around $0.85 apiece.