Borders faces possible delisting from New York Stock Exchange
Ann Arbor-based Borders Group Inc., which is nearing a possible bankruptcy filing, said today it had been warned its stock is at risk of dropping off of the New York Stock Exchange due to its poor financial performance.
NYSE Regulation Inc. told Borders on Thursday that it is on a six-month probationary period of sorts in which the book store chain must boost its stock to an average share price of at least $1 over the course of a month.
If Borders' stock price doesn't top that threshold after six months, the stock could be delisted from NYSE.
The warning is standard procedure for companies whose stock has fallen below an average of $1 for a month.
Borders stock (NYSE: BGP) closed at $0.39 today, pennies away from its all-time low.
The company, which has delayed payments to vendors and landlords in hopes of securing new financing arrangements, may file for bankruptcy in the coming weeks. That would likely wipe out the equity of stockholders.