Magnetek, Inc. (“Magnetek” or the “Company”) (NYSE: MAG) today announced that the New York Stock Exchange (“NYSE”) notified the Company that it has accepted the Company's proposed plan for continued listing on the NYSE. The Listings and Compliance Committee (the “Committee”) of the NYSE has chosen, at its discretion, to truncate the plan period for regaining compliance, given the Company’s recurrence of having fallen below the continued listing standards.
As previously disclosed in a press release issued and Form 8-K filed on September 9, 2011, Magnetek received a notice from the NYSE that it was considered "below criteria" because the Company's total average market capitalization over a consecutive 30-day trading period and its most recently reported stockholders’ equity each amounted to less than $50 million.
As a result of the NYSE's acceptance of Magnetek's plan, the Company's stock will continue to be listed on the NYSE, pending quarterly reviews by the Committee to assess progress against the plan. The Company has until June 30, 2012, to regain compliance with the NYSE’s continued listing standards described above.
Independent of the above requirements, the Company was notified on October 26, 2011, of its non-compliance with the NYSE’s listing standard relating to the price of its common stock, which requires a minimum average closing price of $1.00 per share over 30 consecutive trading days. The Company has a period of six months (the “cure period”) to bring its average share price back above $1.00. Under the NYSE rules, the Company's common stock will continue to be listed on the NYSE during the cure period, subject to the Company's compliance with the other continued listing requirements. The Company plans to notify the NYSE within 10 days of receipt of the letter that it intends to cure the deficiency. The Company is not required to submit a business plan to the NYSE pertaining to the average share price.