The New York Stock Exchange (NYSE) has told US auto supplier ArvinMeritor it has fallen below NYSE’s continued listing standard related to total market capitalisation and stockholders’ equity.
The NYSE requires that the average market capitalisation of a listed company not be less than US$75m over a consecutive 30 trading-day period, when, at the same time, stockholders’ equity is less than $75m.
ArvinMeritor has told the NYSE it plans to correct the situation and to submit a plan, within the required 45 day period, to demonstrate its ability to achieve compliance with the continued listing standards.
“Under NYSE rules, if the NYSE accepts ArvinMeritor’s plan, the company has 18 months from the date of the NYSE notice to cure this deficiency before the NYSE initiates suspension and delisting procedures. If the company is not compliant by that date, its common stock will be subject to suspension and delisting by the NYSE,” the supplier said in a statement.
Its stock will continue to be listed on the NYSE during the cure period, subject to compliance with other continued listing requirements.
ArvinMeritor said its business operations, credit agreement and other debt obligations were not affected.