CHICAGO -- Bally filed a Securities and Exchange Commission (SEC) Form 8-K on Friday in which the company said its shares may be delisted from the New York Stock Exchange (NYSE) if the company does not submit an acceptable business plan that indicates how it will regain compliance within 18 months.
On Monday, the NYSE rated Bally “below criteria” for failing to comply with the exchange’s listing standards, according to the company’s filing with the SEC. The NYSE also pointed to the company’s failure to maintain an average market capitalization of at least $75 million over 30 consecutive trading days, another listing criteria.
Because of Bally’s non-compliance on several issues, the exchange has asked the company to respond to its notification more quickly than in the standard 45-day window. On March 15, Bally announced that it is looking into the possibility of filing for Chapter 11 bankruptcy, sending the stock plummeting to a low of 52 cents. At the close of activity on Friday, Bally’s stock was at 61 cents.
Bally’s shares have been suspended since March 16 because the stock was set to open at or below $1.05, the minimum bid on the NYSE. If Bally shares are delisted, the company said it would make arrangements to be quoted on the OTC Bulletin Board or a similar quotation system.