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NYSE to Commence Proceedings to Delist the Common Stock of Verso Paper Corp.
The New York Stock Exchange have announced that the staff of NYSE Regulation have determined to commence proceedings to delist the common stock of Verso Paper Corp.
Verso has a right to a review of this determination by a committee of the Board of Directors of NYSE Regulation. If they request a review by the committee, the NYSE will announce the date of such review. If subsequently the NYSE announce the suspension of trading in the Company’s common stock then the date on which such suspension will take effect depends on if:
i) Verso does not request a review by the committee within 10 business days of this notice or inform the NYSE in writing prior to the expiration of that period that it does not intend to appeal the delisting determination;
ii) after reviewing the delisting determination, the Committee determines that Verso should be delisted;
iii) Verso is approved to commence trading in another securities marketplace; or
iv) there are other material developments that make a suspension of trading advisable.
The NYSE’s delisting determination was based on the fact that Verso fell below the continued listing standard in Section 802.01B of the NYSE Listed Company Manual, which requires a company to maintain an average global market capitalization over a consecutive 30 trading day period of not less than $75,000,000.
After its initial notification of Verso’s non-compliance with the market capitalization standard, the NYSE accepted a plan from the Verso under which theyproposed to regain compliance with the market capitalization standard within an 18-month plan period. Verso is subject to delisting because it was not in compliance with the $75,000,000 requirement at the end of the plan period as required by the applicable NYSE rule.
NYSE Regulation notes that it may make an appraisal of, and determine on an individual basis, the suitability for continued listing of a listed security in light of all pertinent facts and circumstances whenever it deems such action appropriate. In addition, NYSE Regulation may, at any time, suspend trading in a security if it believes that continued dealings in or listing of the security on the NYSE are not advisable.
The NYSE will not apply to the Securities and Exchange Commission to delist the company’s common stock until after the completion of applicable procedures, including any appeal by Verso of the NYSE Regulation staff’s decision.
