NEW YORK (
Ambac Financial Group
Friday said it's looking at ways to bring its share price back above a $1 in order to get back in compliance with the minimum listing standards of the New York Stock Exchange.
The embattled bond insurer, which is still working to heal its balance sheet from the havoc wreaked by its contracts on collateralized debt obligations, said in a Form 8-K filing with the
Securities and Exchange Commission
that it "is currently in the process of evaluating the potential options available to it for curing this deficiency."
The filing follows the Big Board's notification of the company on Tuesday that its stock had fallen below the exchange's continued listing standard of an average closing price above $1 per share over a 30-day trading period. The average closing price for the 30-day trading period ended on Tuesday for Ambac's stock was 94 cents, the NYSE said.
Ambac's response to the exchange was that it plans to "cure the deficiency" within six months. The company gave no indication what remedy it might have in mind. In similar situations, companies sometimes opt to affect a reverse stock split, which doesn't change the value of a particular stake, just the quote on an individual unit of stock.
Ambac shares were up 8.2% to 85 cents in late trading. The stock is down nearly 40% year-to-date, and last closed above $1 on Nov. 18 (it finished at $1 even on Nov. 19).
Written by Michael Baron in New York.