VOL. 127 | NO. 69 | Monday, April 9, 2012
Pinnacle NASDAQ Delisting Next Move In Reorganization
By Bill Dries
Stock in Memphis-based Pinnacle Airlines Corp. will be delisted from the NASDAQ stock market starting at the opening on business Wednesday, April 11.
The decision by NASDAQ staff at the end of the business day Friday follows Pinnacle’s filing Sunday, April 1, for chapter 11 federal bankruptcy reorganization.
And Pinnacle executives will not appeal the NASDAQ delisting according to a Pinnacle filing Friday with the Securities and Exchange Commission.
“Given these continued listing requirements, the early status of the Chapter 11 cases and the demands the Chapter 11 cases have posed on the company’s resources, the company does not plan to appeal the NASDAQ staff’s determination to delist the company’s common stock,” the Pinnacle statement reads.
With the April 11 suspension from NASDAQ listings, Pinnacle executives have said the company’s stock can be traded only on pink sheets – a pink notice that indicates the company does not trade on NASDAQ.
Pinnacle could apply to trade its stock on the Over the Counter Bulletin Board, (OTCBB) another option for companies delisted. That could happen in May when Pinnacle executives have said they plan to release annual reports and figures that would make the regional air carrier current in its SEC reporting obligations.
Over the counter trading is among individuals connected by computer or telephone without the regulations of a major stock exchange.
“There is no assurance that any market maker will decide to quote the company’s stock at all,” the Pinnacle statement to the SEC reads. “And there is no assurance that the company’s common stock will become eligible to trade on the OTCBB.