Horizon Lines Receives Notice Regarding NYSE Listing Criteria
News Release from Horizon Lines, Inc.
CHARLOTTE, N.C., May 31, 2011 -- /PRNewswire/ -- Horizon Lines, Inc. (NYSE: HRZ) today announced that the New York Stock Exchange (NYSE) has notified the company that it has fallen below the NYSE's continued listing standards related to minimum market capitalization in combination with stockholders' equity.
Horizon Lines is considered below continued listing criteria established by the NYSE because the company's market capitalization averaged less than $50 million over a consecutive 30 trading-day period at the same time that stockholders' equity was below $50 million. According to NYSE continued listing criteria, a NYSE-listed company must maintain average market capitalization of not less than $50 million over a 30 trading-day period and stockholders' equity of not less than $50 million. Horizon Lines' stockholders' equity was below $50 million in its most recent 10-Q filed with the Securities and Exchange Commission on April 29, 2011, for the quarter ended March 27, 2011.
Horizon Lines has notified the NYSE that it will submit a plan to restore compliance. The company has 45 days from receipt of the May 24, 2011 notice to submit a plan and the NYSE has 45 days from receipt of the plan to accept or reject it. If the plan is accepted, the company has up to 18 months to demonstrate compliance with the NYSE continued listing standards. During this 18-month period, the company's shares will continue to be listed and traded on the NYSE, subject to compliance with other NYSE continued listing standards.
The company is currently in discussions to refinance its debt and, as part of the plan to restore compliance, it hopes that a successful refinancing outcome, if achieved, will help cure the deficiency.
"Our objective is to secure a comprehensive refinancing," said Stephen H. Fraser, President and Chief Executive Officer. "We believe our current stock price and market capitalization reflect investor concern over our ability to achieve a long-term refinancing that deleverages the company and preserves equity. We are working to complete a successful refinancing which we hope will alleviate that concern and help us achieve higher market capitalization."