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[April 2009]
Libbey Shares Move to OTC Bulletin Board
Libbey Inc (Toledo, OH, USA) has announced that it received notice from the New York Stock Exchange (NYSE) that trading of the company's stock would be suspended prior to the market opening on 20 April 2009 and the shares would be delisted.
The NYSE took this action because Libbey has been unable to comply with the stock exchange's requirement to maintain an average market capitalisation not less than US$15 million for a 30 trading day period. Accordingly, delisting is automatic.
As announced on 20 February 2009, Libbey was notified that it had fallen below the NYSE's continued listing standard of US$75 million relating to the company's total market capitalisation and its stockholders' equity. Libbey subsequently provided the NYSE on 1 April 2009, a business plan that demonstrated Libbey's strategy to return to compliance with these continued listing standards within 18 months. However, the NYSE proceeded with suspension in light of the non-compliance with the minimum market capitalisation requirement.
Historically, a substantial portion of the company's trading volume has been on markets other than the NYSE, including NASDAQ and various foreign exchanges. Libbey said it expected that its common stock would begin trading on the Over the Counter Bulletin Board (OTC BB) under a new ticker symbol on 20 April 2009.
"While we are disappointed that we will no longer have the visibility of the New York Stock Exchange, we do not believe the delisting is a reflection on the fundamental strength of our business," said John Meier, Chairman and CEO. "There should be no significant impact on day-to-day operations or continued implementation of our growth strategy. We are confident that we have sufficient sources of liquidity to meet our current needs."
Libbey reported that it had available capacity of US$51.1 million under its Asset Backed Loan (ABL) credit facility as of 13 April 2009 and cash on hand of approximately US$16 million. This compares to ABL availability of US$44.6 million and cash on hand of US$13.3 million as at 31 December 2008.
ENDS