Horizon Lines struggles to stave off delisting from NYSE

HORIZON LINES, America's biggest ocean carrier, must face a possible delisting on New York Stock Exchange (NYSE) because its market capitalisation and stockholder equity has fallen below listing requirements.


But Horizon said it will submit a plan to the NYSE on how it will restore financial compliance. If accepted, the carrier will have up to 18 months to comply with stock exchange standards.


The stock exchange requires companies maintain stockholders equity of US$50 million and market capitalisation of $50 million over 30 consecutive trading days, noted Newark's Journal of Commerce. Horizon has not been able to do so in the wake of facing price-fixing fines.


Despite the US Justice Department's April agreement to reduce the Horizon's $45 million anti-trust fine by $15 million, it is has proven impossible to continue business as before.


Horizon president and CEO Stephen Fraser said the carrier is working hard to "secure a comprehensive refinancing" plan that the company hopes it will help to "achieve higher market capitalisation" so it does not need to be delisted.
(Source:http://www.schednet.com)