Tuesday, May 19, 2009

McClatchy's report to NYSE due next week

Under orders from the New York Stock Exchange to develop a plan to get back in compliance with NYSE requirements, McClatchy should be submitting its plan to the exchange by the end of next week. Here is an excerpt from McClatchy's form 8-K SEC filing last month:

On April 14, 2009, The McClatchy Company ("McClatchy" or the "Company") received notice from the New York Stock Exchange (NYSE) that it is not in compliance with the exchange's continued listing standard for total market capitalization and stockholders' equity. NYSE continued listing standards applicable to the company include average market capitalization of no less than $75 million over a 30 trading-day period and stockholders' equity of no less than $75 million.

The Company is now considered below the criteria for the continued listing standards because as of April 8, 2009, its total market capitalization was less than the minimum of $75 million over a consecutive 30-trading-day period and its last reported stockholders' equity on its most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission (SEC) was $52.4 million, also less than $75 million.

In accordance with NYSE procedures, McClatchy has 45 days from the receipt of the notice to submit a plan to the NYSE demonstrating how it intends to comply with the NYSE's continued listing standards within 18 months from the receipt of the notice. McClatchy intends to develop a plan to bring the company in compliance with the listing standards within the required timeframe.

Once the plan is submitted, McClatchy has 18 months to get its act together or get booted off the Big Board.

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