Volt Information Sciences, Inc. (NYSE: VOL) today reported that it has received an additional extension for continued listing and trading of the Company’s common stock on the New York Stock Exchange and has entered into amendments to the agreements relating to its $150 million accounts receivable securitization program.
New York Stock Exchange
The Company announced that it has received an extension from the New York Stock Exchange to file with the Securities and Exchange Commission its fiscal 2009 Annual Report on Form 10-K from December 31, 2010 to February 1, 2011. The Exchange noted that in the event the Company does not file the 10-K Report by February 1, 2011 it would initiate suspension and delisting procedures. The NYSE has advised the Company that the extension is subject to reassessment on an ongoing basis and that the Exchange will closely monitor the progress made toward the filing of the 10-K Report. The Company continues to devote significant resources in its efforts to meet the NYSE deadline, but there can be no assurance that it will meet this deadline. During the year ended October 31, 2010, the Company incurred consulting, legal and accounting expenses of approximately $28 million in connection with the restatement of its financial statements and related investigations.
The Company also stated that it has entered into amendments to its accounts receivable securitization program that extend the time to May 2, 2011 for delivery of the Company’s audited financial statements, including its fiscal year ended October 31, 2010. The securitization program does not contain financial covenants. No amendments were required to any of the Company’s or any subsidiary’s other credit facilities, including the Company’s $42 million bank credit facility.
Under the securitization program, accounts receivable related to the United States operations of the Staffing Solutions business of the Company and certain of its subsidiaries are sold from time-to-time to Volt Funding Corp., which, in turn, sells an undivided percentage ownership interest in the pool of receivables to a commercial paper conduit. The Company retains the servicing responsibility for the accounts receivable.