The New York Stock Exchange said it is moving to delist the stock of RadioShack Corp. (NYSE:RSH) and will immediately suspend trading in the struggling consumer-electronics retailer's shares.
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The NYSE said in a press release Monday the decision to delist RadioShack's stock was made because the retailer doesn't intend to submit a plan to regain compliance with the stock exchange's listing requirements, which include an average market capitalization of at least $50 million over 30 consecutive trading days, or stockholders' equity of at least that amount.
The Wall Street Journal reported on Sunday that hedge fund Standard General LP was in talks to serve as the lead bidder at a bankruptcy auction for RadioShack.
Separately, RadioShack said in a regulatory filing that it received on Jan. 27 a second notice of default on a credit agreement.
RadioShack, which is running out of cash after reporting losses in each of the last 11 quarters, was aiming to file for Chapter 11 protection as early as Monday, the Journal reported. But as of Sunday afternoon, the company and its advisers were still working out the details of an agreement with Standard General to serve as the so-called stalking horse at a court-supervised auction for RadioShack's assets, the Journal reported.
Standard General last year became the company's largest shareholder and led a financing that helped RadioShack get through the holidays.