Posted Thursday, October 2, 2008 10:31 PM | Contributed by Jason Hammond
Six Flags, Inc. announced today that it is not in compliance with the continued listing standards of the New York Stock Exchange ("NYSE") because the thirty-day average closing price of the Company's common stock was less than $1.00. Under applicable NYSE rules, the Company generally has six months to cure the deficiency. The Company's common stock will remain listed on the NYSE in the interim. If the trading average does not sufficiently improve, the Company intends to consider all available alternatives, including, among other things, a reverse stock split. If the Company decides to cure the deficiency by seeking stockholder approval of a reverse stock split, it must do so no later than the 2009 annual meeting, which is scheduled for May 2009. Failure to be listed on the NYSE does not constitute a default under any of the Company's debt instruments.
Mark Shapiro, President and Chief Executive Officer said: "Many companies are facing challenges in today's volatile economic climate and Six Flags is no exception. As we move closer to the redemption date of our preferred stock instruments in August of next year, uncertainty about the Company's ability to refinance these obligations in light of the overall market conditions has put negative pressure on our stock. We believe that our improved performance and cash flows will be key to repositioning the Company for long-term growth."
Read the rest of the press release on MarketWatch.
Not a surpise here. Sf's screwed.
Based on what? If the company gets delisted, it's not like it ceases to exist. A company I worked for got delisted six years ago, and, gasp!, it's still running.
You'll just have to buy the stock at your local 99 cent store instead of the stock exchange. ;)
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