100 years ago Libbey was big. Now it is fighting for respect.
Libbey Inc. (NYSE: LBY) announced today that it has received notice from the New York Stock Exchange (NYSE) that trading of the Company's stock will be suspended prior to the market opening on April 20, 2009 and the shares will be delisted.
The NYSE took this action because Libbey has been unable to comply with the stock exchange's requirement to maintain an average market capitalization not less than $15 million for a 30 trading day period. Accordingly, delisting is automatic.
As announced on February 20, 2009, Libbey was notified that it had fallen below the NYSE's continued listing standard of $75 million relating to the Company's total market capitalization and its stockholders' equity. Libbey subsequently provided the NYSE on April 1, 2009, a business plan that demonstrated Libbey's strategy to return to compliance with these continued listing standards within 18 months. However, the NYSE proceeded with suspension in light of the non-compliance with the minimum market capitalization requirement.
Historically, a substantial portion of the Company's trading volume has been on markets other than the NYSE, including NASDAQ and various foreign exchanges. Libbey expects that its common stock will begin trading on the Over the Counter Bulletin Board (OTC BB) under a new ticker symbol on April 20, 2009.
"While we are disappointed that we will no longer have the visibility of the New York Stock Exchange, we do not believe the delisting is a reflection on the fundamental strength of our business," said
John F. Meier
, chairman and chief executive officer.
"There should be no significant impact on day-to-day operations or continued implementation of our growth strategy. We are confident that we have sufficient sources of liquidity to meet our current needs."
Libbey reported that it had available capacity of $51.1 million under its Asset Backed Loan (ABL) credit facility as of April 13, 2009 and cash on hand of approximately $16.0 million. This compares to ABL availability of $44.6 million and cash on hand of $13.3 million at December 31, 2008.