WELLESLEY HILLS, Mass. (June 8, 2009)—American Biltrite Inc. said it will submit a plan to the NYSE Amex L.L.C. to respond to a letter it received notifying the company that it didn't meet certain continued listing standards of the Amex.
The letter said that American Biltrite was not in compliance with two sections because its stockholder' equity was too low and it had posted losses from continuing operations and/or net losses in three of its four most recent fiscal year. The company was told to submit a plan by June 29 to address how it will meet the continued listing standards within 18 months.
American Biltrite said the noncompliance is caused by the consolidation of the current substantial stockholders' deficit of subsidiary Congoleum Corp., which is in Chapter 11 bankruptcy proceedings, according to Chairman Roger S. Marcus.
He said American Biltrite's majority ownership in Congoleum is expected to be eliminated as part of the Chapter 11 reorganization. At that point, the firm would no longer consolidate Congoleum with American Biltrite and that the stockholders' equity would then be sufficient to meet continued listing requirements.