Fedders Corporation (Liberty Corner, New Jersey, U.S.) said today it was notified by the New York Stock Exchange that it is currently not in compliance with the NYSE's continued listing standards. The company is considered "below criteria" by the NYSE since, over a 30 trading-day period, its average global market capitalization was less than U.S. $75 million, as of January 30, 2006 and its stockholders' equity was less than $75 million as of its September 30, 2005 Form 10-Q. Fedders is a global manufacturer of air treatment products, including air-conditioners, furnaces, air cleaners, dehumidifiers, and humidifiers for residential, commercial and industrial markets.
In accordance with NYSE rules, Fedders plans to submit a business plan to the NYSE within 45 days that will demonstrate compliance with the continued listing standards within 18 months.
Fedders believes that, as a result of the previously announced identified cost savings in excess of $20 million, in part related to consolidations in its operating units, and its focus on growth and profitable business, the business plan it submits to the NYSE will demonstrate compliance.
Once it receives the plan the NYSE will make a determination to accept the business plan, which will subject Fedders to quarterly monitoring for compliance with business plan, or it will reject the business plan, at which time Fedders will be subject to suspension by the NYSE and delisting by the SEC.
Beginning on February 13, 2006, the NYSE will make available on its consolidated tape an indicator, ".BC," to reflect that the company is below the NYSE's quantitative listing standards. The indicator will be removed when Fedders is deemed compliant with the NYSE's continued listing standards.
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