(Host) The stock price of American Skiing Company has fallen far over the last few years. Now regulators have begun moves to remove the stock from trading on the New York Stock Exchange.
VPR’s John Dillon reports.
(Dillon) American Skiing Company has endured a rocky slide since its initial public offering in the fall of 1997. The stock was initially offered at $18 a share. On Monday, it traded around 50 cents a share.
The Maine-based company owns two ski areas in Vermont. It’s been burdened by high debt and last year narrowly avoided bankruptcy.
The New York Stock Exchange has now told ASC that it no longer meets the financial requirements to be listed on the nation’s premier stock marketplace. It’s total capitalization has fallen below the required $50 million. The exchange also requires stock to meet minimum trade price of $1 a share over a 30-day period. The last time ASC traded for a dollar a share was October 22nd.
Skip King is the company’s spokesman:
(King) “The exchange has notified us that we’re not meeting their minimum listing requirement and that they may delist the stock unless we present an acceptable plan to meet those requirements.”
(Dillon) ASC has asked the exchange to give it 18 months to get its financial house in order:
(King) “First of all, we are committed to maintaining our listing status with the NYSE and we have told the exchange that. And we’re working with them for the express purpose of maintaining our listing status, and then we’re going to wait until the process is completed before we speculate on anything else.”
(Dillon) American Skiing Company recently sold the Sugarbush resort in Warren. It still owns the Killington and Mount Snow ski areas in Vermont, as well as other resorts in Utah, Maine, New Hampshire, Colorado and California.
For Vermont Public Radio, I’m John Dillon.