LodgeNet Receives Delisting notice from NASDAQ

  • LodgeNet Interactive Corporation
  • 01.08.13
LodgeNet Interactive Corporation (NASDAQ: LNET) announced that on January 3, 2013 the company received a staff determination letter from the Listing Qualifications Department of The NASDAQ Stock Market, notifying the company that the company’s securities will be subject to delisting from The NASDAQ Stock Market.

Trading of the company’s common stock will be suspended at the opening of business on January 14, 2013, and a Form 25-NSE will be filed with the U.S. Securities and Exchange Commission to remove the company’s common stock from listing and registration on The NASDAQ Stock Market. The company does not intend to request an appeal of the decision to delist its common stock.

On December 31, 2012, the company disclosed that it has entered into a $60 million investment agreement with Colony Capital, LLC and its affiliate, and certain other investors, to effect a recapitalization of the company that will be implemented through an expedited Chapter 11 bankruptcy process (the “Planned Bankruptcy Filing”). Pursuant to the Planned Bankruptcy Filing, as previously disclosed, holders of the company’s outstanding shares of common stock and Series B Preferred Stock will have their shares cancelled without receiving any distribution.

The staff’s determination to delist the company’s securities from The NASDAQ Stock Market, in accordance with the staff’s authority under Listing Rules 5101 and IM-5101-1, was based on the Planned Bankruptcy Filing and associated public interest concerns raised by it. The staff’s letter also cited concerns regarding the residual equity interest of the existing listed securities holders, as well as concerns about the Company’s ability to sustain compliance with all requirements for continued listing on The NASDAQ Stock Market, as reasons for the delisting determination.

As previously disclosed, on August 31, 2012, the staff notified the company that the bid price of its common stock had closed below $1 per share for 30 consecutive trading days, and accordingly, that the company did not comply with Listing Rule 5450(a)(1). Also, as previously disclosed, on September 21, 2012, the staff notified the company that for 30 consecutive days prior thereto it no longer met the market value of publicly held shares requirement of $15 million as required by Listing Rule 5450(b)(3)(C). The company has not regained compliance with either rule.

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