DETROIT Dura Automotive Systems Inc. said Tuesday, Sept. 19, that it has received a letter from the Nasdaq Stock Market >saying that the company is in danger of being removed from the exchange.
Dura, of Rochester Hills, Mich., said the bid price of the company's Class A shares have closed below Nasdaq's minimum $1-per-share requirement for the past 30 consecutive days.
Dura now has 180 days, or until March 12, to regain compliance with the Nasdaq's $1 minimum bid price rule. Dura may be able to remain a part of Nasdaq if its stock closes at $1 a share or more for a minimum of 10 consecutive days.
But even then, Nasdaq has the discretion to require a period of more than 10 business days before determining that the ability to maintain long-term compliance has been demonstrated.
In August, Dura disclosed that in August it hired financial restructuring firm Miller Buckfire & Co. L.L.C. and turnaround firm Glass & Associates Inc. , both based in New York City, to advise Dura on how to restructure its financial debt.
Last week, a Lehman Bros. analyst predicted Dura would file for Chapter 11 bankruptcy in the next few months.
In response, Robert Mead, a partner with New York City public-relations firm Brunswick Group L.L.P., which represents Dura, said "We are evaluating our capital structure with an eye towards restructuring our financial debt, and it's premature to speculate on how we might implement a financial restructuring."
Dura makes automotive parts such as parking brakes, gear shifts, hood and tailgate latch systems.
Dura ranks No. 65 on the Automotive News list of the top 100 global suppliers with worldwide original-equipment automotive parts sales of $2.34 billion in 2005.
You may e-mail Brent Snavely at [email protected]
