Yet another big radio group is poised to have
its stock booted from the stock exchange. The latest victim is Spanish Broadcasting System, which has failed to raise its share price above the minimum requirement of $1. SBS was informed that it
faces delisting from the Nasdaq exchange.
Thus far, SBS has managed to wriggle out of the threatened delisting with various delaying tactics. The company was first notified that it was at
risk of delisting in August 2008 and received a 6-month grace period to return to compliance by boosting its share value above $1.
The first threatened delisting, in January 2009, was put off
because of the unusually poor economic circumstances. It was then given until Dec. 4 to pump up the share price, but again failed to do so.
Now SBS has temporarily forestalled the delisting,
originally scheduled to take place Dec. 16, by asking for a hearing with Nasdaq's Listing Qualifications Panel -- but its options for further delays are running out.
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Two weeks ago, Regent
Communications was also warned by Nasdaq that it is in danger of being delisted, after failing to get its share price above $1 by Nov. 25. Like SBS, Regent was able to temporarily put off the
delisting by petitioning for an emergency meeting with the Listing Qualifications Panel, but it's not clear what new evidence or arguments it can put before the panelists to convince them to keep the
stock on the exchange.
Regent and SBS are not the only radio groups to get the stock exchange heave-ho.
In February of this year, Citadel was delisted by the New York Stock Exchange
after it failed to raise its stock price above the $1 minimum, presaging further financial difficulties which climaxed with its declaration of bankruptcy last week.
Among newspaper publishers,
The Journal Register Co. was delisted by the NYSE in 2008.