Flag Appeals Nasdaq Delisting

Planned delisting of company in Chapter 11 on Monday (April 22) will now not happen

April 19, 2002

1 Min Read

FLAG Telecom Holdings Ltd. (Nasdaq: FTHLQ) today announced that on April 12, 2002, it received a notice from The Nasdaq Stock Market, Inc. of a determination that the Company's securities are subject to delisting from The Nasdaq National Market. This delisting would be effective at the opening of business on April 22, 2002. However, under Nasdaq Marketplace Rules, the Company has requested a hearing to appeal that determination. The Nasdaq notice was prompted by the Company's recently announced Chapter 11 filing as well as concerns about the ability to sustain compliance with certain technical requirements for continued listing under Nasdaq's Marketplace Rules. The Company has requested an oral hearing before a Nasdaq Listing Qualifications Panel to appeal the staff determination. No date for a hearing has been set. This hearing request will stay the delisting of the Company's stock pending a decision by the Panel. In its notice, Nasdaq staff indicated that its decision was based on Marketplace Rules 4330(a)(1) and 4450(f), which permit Nasdaq to terminate the inclusion of a security of an issuer that files for protection under the federal bankruptcy laws, and the failure to comply with the minimum bid price requirement for continued listing contained in Marketplace Rule 4450(a)(5). In addition, Nasdaq's notice stated that the Company's 2002 annual Nasdaq Issuer Quotation fee has not yet been paid and that, as a result, the Company does not comply with Marketplace Rule 4310(c)(13). Consistent with its obligations under the federal bankruptcy laws, the Company has paid the pro-rata post-filing portion of this annual fee for 2002. There can be no assurance that the Panel will grant the Company's request for continued listing on the Nasdaq National Market.

FLAG Telecom (Nasdaq: FTHL; LSE: FTL)

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