ExpressJet (XJT)

[mtrewulf]

(AP:HOUSTON) ExpressJet Holdings Inc., which operates regional flights for Continental Airlines, said Friday it will hold a shareholder meeting Oct. 1 to consider a reverse stock split.

The company said in a regulatory filing that shareholders will vote on a 1-for-10 reverse split of common shares and whether to reduce authorized shares from 400 million to 150 million.

Houston-based ExpressJet said it needs the reverse split to avoid the delisting of its shares by the New York Stock Exchange, which demanded that the average share price rise above $1.

Shares closed Friday at 23 cents and were unchanged for the day.

Earlier this summer, the company announced it would repay debt by issuing new stock, which would reduce the value of current shares.

ExpressJet lost $31.7 million in the second quarter and is demanding wage concessions from employees to return to profitability. The company, which was spun off from Continental, is ending feeder service for Delta Air Lines and grounding its own ExpressJet Airways next month.

ExpressJet has been exploring strategic possibilities including a possible sale. It rebuffed an unsolicited takeover bid from SkyWest in April.


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