NYSE warns Horizon Lines
Horizon Lines said the New York Stock Exchange notified it last week that it has fallen below the NYSE's continued listing standards related to minimum market capitalization in combination with stockholders' equity.
The exchange requires companies to maintain average market capitalization of not less than $50 million over a 30-day trading period if, at the same time, stockholders' equity is less than $50 million. The company's 30 trading-day average market capitalization was $49.5 million as of May 11.
Horizon has 45 days from May 24 to submit a plan that demonstrates its ability to achieve compliance with the continued listing standard within 18 months.
Horizon said it would submit such a plan, noting it is “in discussions to refinance its debt and, as part of the plan to restore compliance, it hopes that a successful refinancing outcome, if achieved, will help cure the deficiency.”
“Our objective is to secure a comprehensive refinancing,” said Stephen H. Fraser, Horizon president and chief executive officer. “We believe our current stock price and market capitalization reflect investor concern over our ability to achieve a long-term refinancing that deleverages the company and preserves equity. We are working to complete a successful refinancing which we hope will alleviate that concern and help us achieve higher market capitalization.”