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December 27, 2011 12:21 PM EST
Bankrupt air carrier AMR Corp (NYSE: AMR) is getting closer and closer to hitting a level that could trigger a delisting from the NYSE.
One of the stipulations the NYSE has outlined for continued listing requires a minimum average share price of $1.00 over a 30 trading day period. AMR is now pennies away from falling below $1.
If AMR closes at or around the current level of $0.56 per share today, then the average closing price over the past 30 trading days would be $1.03.
Tomorrow, 12/28, AMR's average 30-day closing price would likely drop below the $1 level. A close at or near the $0.56 level on Wednesday would put the 30-day average price at $0.97.
While the average price of AMR will fall below the level mandated by the NYSE as of the close Wednesday, the delisting may not be automatic.
According to NYSE rules:
"Once notified, the company must bring its share price and average share price back above $1.00 by six months following receipt of the notification. A company is not eligible to follow the procedures outlined in Paras. 802.02 and 802.03 with respect to this criteria. The company must, however, notify the Exchange, within 10 business days of receipt of the notification, of its intent to cure this deficiency or be subject to suspension and delisting procedures. In addition, a domestic company must disclose receipt of the notification by issuing a press release disclosing the fact that it has fallen below the continued listing standards of the Exchange within the time period allotted by SEC rules for the making of a filing with respect to Exchange notification of that event, but no longer than four business days after notification. A non-U.S. company must issue this press release within 30 days after notification."
AMR's ability to "cure" this deficiency would seem impossible. This would suggest delisting would be imminent, although the timing of such a move still remains a question.
The NYSE told StreetInsider.com on Tuesday that while AMR continues to be listed on the exchange they are monitoring the status of the stock based on the criteria listed in their November press release.