Ditech Holding Corporation (NYSE: DHCP) late last week received a delisting warning from the New York Stock Exchange, its third such compliance notice in less than a year.
The most recent NYSE issue came after Ditech failed to submit its first quarter report to the Securities and Exchange Commission within the specified time period. Management blamed its recent bankruptcy proceedings, which saw the former Walter Investment Management Corporation emerge as Ditech earlier this year, for the delay.
“The company was unable to file its Form 10-Q within the prescribed time period with unreasonable effort or expense due to various factors, such as … the application of fresh-start accounting in connection with the company’s emergence from Chapter 11 bankruptcy on February 9, 2018, which resulted in the company requiring additional time to complete its financial closing procedures and, as a result, its independent registered public accounting firm requiring additional time to complete the interim review of the company’s consolidated financial statements,” Ditech wrote in a separate SEC filing.
Ditech, the parent company of Reverse Mortgage Solutions, has until November 21 to produce a completed 10-Q; should the Fort Washington, Pa.-based company fail to do so, the NYSE could grant a six-month extension or move to initiate a delisting motion.
“The company continues to work diligently to complete its form 10-Q, which it anticipates filing with the SEC as soon as reasonably practicable,” Ditech wrote in the filing.
As Walter, the company had received a separate delisting warning after its market capitalization fell bellow $50 million over a 30-day period; at the same time, stockholder equity also dipped under $50 million.
“The company has not yet regained compliance with this listing standard,” Ditech noted in the most recent filing.
Back in July 2017, the NYSE also flagged Walter after its stock price dropped below $1 for a 30-day trading period, another violation of its listing requirements. Ditech’s stock closed Wednesday’s trading at $6.75 per share, and has sat well above the $1 threshold since the bankruptcy was completed.
Written by Alex Spanko