GateHouse Media submits plan to New York Stock Exchange

GateHouse Media, threatened with delisting by the New York Stock Exchange, filed a plan Monday showing how it would come into compliance with NYSE standards.

Unfortunately for the company, which owns The Carthage Press and Neosho Daily News, the plan was submitted the same day the company's stock price hit an all-time low of 25 cents per share.

The plan was discussed in a filing today with the Securities and Exchange Commission (SEC):

The business plan includes, but is not limited to, the continued suspension of the Company’s dividend, the repayment of amounts outstanding under the Company’s revolving credit facility, which was paid in full as of September 30, 2008, building cash for greater liquidity and utilization of future free cash flow for de-levering. If the NYSE does not accept such plan, the NYSE will commence suspension and delisting procedures and will work with the Company on an orderly transition to an alternative market.

If the plan is accepted, under applicable rules and regulations of the NYSE regarding the Market Capitalization Deficiency and the Share Price Deficiency, the Company must achieve compliance with the market capitalization listing standard and the share price standard within eighteen (18) months and six (6) months, respectively, from the receipt of the Notice. If the Company is not compliant by these dates, its common stock will be subject to suspension and delisting by the NYSE.

The Company’s common stock remains listed on the NYSE under the symbol GHS, but has been assigned a “.BC” indicator by the NYSE to signify that the Company is “below compliance” with the NYSE’s continued quantitative listing standards. Although the Company intends to cure the deficiencies and to return to compliance with the NYSE continued listing requirements, there can be no assurance that it will be able to do so.