NYSE sends Ditech a second noncompliance notice
Ditech Holding Corp. has received a second notice from the New York Stock Exchange warning its common stock could be delisted for not being in compliance with the exchange's requirements.
The company has yet to announce its first-quarter results and has not filed its 10-Q with the Securities and Exchange Commission. It announced its full-year 2017 results on April 16, the same day it filed that year's 10-K form with the SEC.
Those first-quarter results are delayed because of the application of fresh start accounting in connection with Ditech's emergence from Chapter 11 bankruptcy on Feb. 12, a press release said. That resulted in Ditech's need for additional time to complete its financial closing procedures and, in turn, its accounting firm required more time to complete the interim review of the first quarter's consolidated financial statements.
The mortgage lender has six months from May 21 to file the 10-Q form, with the exchange having the option to grant an additional six-month period.
However, the NYSE can start delisting procedures at any time if circumstances warrant, the Ditech press release said.
Last August, the NYSE warned Walter Investment Management Corp., the pre-bankruptcy name of Ditech's holding company, that because its average market capitalization was under $50 million and that its stockholders' equity was under $50 million for 30 consecutive trading days, it was not in compliance with the listing standards.
Ditech has yet to regain compliance with this standard, the press release said. Its market capitalization as of midday on May 29 was $29.36 million.
When it emerged from bankruptcy, Ditech opened at $10.10 per share. The last time it traded at over $10 was on March 20 and its May 29 opening price was $6.63 per share.