Suntech out of compliance with NYSE standards
Struggling solar panel maker Suntech Power Holdings Co. said Friday that it intends to increase its stock price over the next six months in order to regain compliance with the New York Stock Exchange's listing standards.
The average closing price of the Chinese company's U.S.-traded shares has been less than $1 for 30 straight trading days, which violates NYSE listing requirements. Shares closed above $1 on Wednesday and Thursday, but before then had ended below $1 every day since Aug. 24.
Suntech has posted four straight quarterly losses and said this week that it will cut production capacity. Like other solar products makers, it's dealing with an oversupply of solar products and a plunge in prices. In addition, Chinese companies like Suntech have been hit with anti-dumping tariffs in the U.S., which have raised their costs.
The company has six months to regain compliance with NYSE rules. To do that, its U.S.-traded shares must have a closing price of at least $1 on the last trading day of any month over that period, and have an average closing share price of at least $30 over that month.
While Suntech attempts to regain compliance with the NYSE, its shares will keep trading on the stock exchange.
Suntech shares fell 4 cents, or 3.9 percent, to 98 cents in morning trading. Over the past 52 weeks, the company's shares have traded between 71 cents and $4.40 and have dropped 55 percent in 2012.