Nortel’s woes have continued as it announced it has received a notice from the New York Stock Exchange (NYSE) that it has fallen below one of its continued listing standards.
The NYSE was prompted to act after the communication vendor’s share price closed at less than $1 during 30 consecutive trading days to 9 December.
Under the NYSE's rules, the company has six months from the date of the notice to bring its average common share price back above the magic $1 mark. If its share price does not “sufficiently improve”, Nortel indicated it may present a proposal to shareholders for a consolidation of its outstanding common shares at its annual meeting in the spring.
The announcement comes hot on the heels of reports claiming Nortel has taken legal advice on bankruptcy.
According to the Wall Street Journal, the Canadian firm has sought the counsel of lawyers to explore the eventualities of filing for bankruptcy protection, should its restructuring plans fail.
The vendor’s share price has lost 97 per cent of its value over the course of 2008.
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