Great Lakes Aviation has requested a hearing before a Nasdaq listing qualification panel to contest the planned delisting of its shares from the Nasdaq Stock Market. The hearing request in effect delayed the delisting of Great Lakes’ securities pending the panel’s decision. The company said in a statement that it intends to submit a specific plan in oral and written presentations to Nasdaq, including a financial restructuring to allow it to comply with the listing criteria.
Nasdaq informed Cheyenne, Wyo.-based Great Lakes in late April that it planned to remove the company from its market due to non-compliance with certain financial thresholds. According to Great Lakes’ SEC 10K report, it did not meet Nasdaq’s required minimum of $2 million in net assets, $2.5 million in stockholders’ equity or $500,000 in net income for the past fiscal year or two of the three most recent fiscal years. Nasdaq officials also informed Great Lakes that its common stock price of less than $1 disqualifies it from being listed on the Nasdaq securities exchange, and had given the airline until August 13 to contest the delisting. The company claims it has entered negotiations with its largest creditor to convert a portion of its debt into equity and restructure the balance of its obligations. If Nasdaq rejects Great Lakes’ arguments, its securities would become known as “penny stocks,” and trade under SEC rules that require brokers to provide suitability determinations for purchasers and get written consent for a purchase transaction.