On Your Six
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- Mar 8, 2004
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Nasdaq appears concerned about ATA's liquidity crisis. If the delisting happens, watch other creditors move quickly. Difficult times ahead unless ATA can change course quickly.... Read below:
Nasdaq to delist ATA unless stock recovers
Monday August 30, 11:43 am ET
NEW YORK, Aug 30 (Reuters) - ATA Holdings Corp. (NasdaqNM:ATAH - News), parent of low-cost carrier ATA Airlines, said on Monday it has 3 months to regain compliance to trade on the Nasdaq, failing which the company's securities will be delisted.
The company, which is facing a liquidity crisis, said it received a letter from Nasdaq indicating it has not maintained the $15 million minimum market value of publicly held shares.
To regain compliance, ATA Holdings stock must trade at a total value of $15 million or more for 10 consecutive trading days by November 23, 2004.
If it cannot meet those requirements, the company plans to transfer its securities to the Nasdaq SmallCap Market by November 23, 2004, it said in a statement.
The Indianapolis-based airline said in a federal filing earlier this month that, barring changes to its aircraft lease agreements, it does not expect to have enough cash to meet those obligations in the first quarter of 2005.
ATA, the largest carrier at Chicago's Midway International Airport, also said it would consider selling some assets to restructure its finances.
ATA Holdings shares edged down 3 cents to $2.11 shortly before midday on Nasdaq.
Nasdaq to delist ATA unless stock recovers
Monday August 30, 11:43 am ET
NEW YORK, Aug 30 (Reuters) - ATA Holdings Corp. (NasdaqNM:ATAH - News), parent of low-cost carrier ATA Airlines, said on Monday it has 3 months to regain compliance to trade on the Nasdaq, failing which the company's securities will be delisted.
The company, which is facing a liquidity crisis, said it received a letter from Nasdaq indicating it has not maintained the $15 million minimum market value of publicly held shares.
To regain compliance, ATA Holdings stock must trade at a total value of $15 million or more for 10 consecutive trading days by November 23, 2004.
If it cannot meet those requirements, the company plans to transfer its securities to the Nasdaq SmallCap Market by November 23, 2004, it said in a statement.
The Indianapolis-based airline said in a federal filing earlier this month that, barring changes to its aircraft lease agreements, it does not expect to have enough cash to meet those obligations in the first quarter of 2005.
ATA, the largest carrier at Chicago's Midway International Airport, also said it would consider selling some assets to restructure its finances.
ATA Holdings shares edged down 3 cents to $2.11 shortly before midday on Nasdaq.
