NovaStar (NFI) said it faces delisting from the New York Stock Exchange.
The Kansas City, Mo., said its common shares will continue to trade on the NYSE while it appeals a determination that a change in its corporate structure leaves it short of the exchange's listing standards.
The announcement comes a day after NovaStar said it sold some mortgage servicing rights to Saxxon for $175 million. Last month, NovaStar said it wouldn't pay a dividend, effectively terminating its tax-advantaged real estate investment trust status.
Shares were halted late Wednesday after falling 39 cents in regular action to close at $7.31.