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Magnetek, Inc. (“Magnetek” or the “Company”) announced today that, on September 8, 2011, the Company received notification from NYSE Regulation of being below the continued listing standards of the New York Stock Exchange (“NYSE”). The Company is considered below criteria established by the NYSE because the Company’s average market capitalization has been less than $50 million over a consecutive 30 trading-day period and its last reported shareholders’ equity was less than $50 million.
In accordance with NYSE procedures, the Company has 45 days from the receipt of the notice to submit a business plan to the NYSE demonstrating how it intends to regain compliance with the NYSE’s continued listing standards within 18 months (the “plan period”). Magnetek intends to develop and submit such a business plan within the required time frame. The Listings and Compliance Committee of the NYSE (the “Committee”) will then review the business plan for final disposition.
In the event the Committee accepts the plan, the Company will be subject to quarterly monitoring for compliance with the business plan and the Company’s stock will continue to trade on the NYSE during the plan period, subject to the Company’s compliance with other NYSE continued listing requirements. In the event the Committee does not accept the business plan, the Company will be subject to suspension by the NYSE and delisting procedures.
The Committee may, at its discretion, accept the Company’s business plan but choose to truncate the usual 18 month plan period, given the recurrence of having fallen below the continued listing standards. In June 2010, the Company was notified by NYSE Regulation that it was not in compliance with the continued listing standards of the NYSE. The Company subsequently submitted a business plan and regained compliance with the listing standards as of the end of the truncated 12 month plan period in June 2011.