Stock Exchange Delists Supplier Visteon; May Drop American Axle
By Michelle Krebs March 5, 2009By Michelle Krebs
The New York Stock Exchange plans to delist the stock of ailing auto supplier Visteon Corp. on Friday and has warned another supplier, American Axle, that it could be delisted if certain criteria aren't met.
Visteon's stock has been at "abnormally low trading levels," the stock exchange said in a statement. It was trading at 7 cents a share Thursday morning, putting its market capitalization at about $7.8 million. A year ago, Visteon traded at about $3.70 a share.
Visteon, headquartered near Detroit, was formed by Ford Motor Co. by spinning off its parts division into a single, standalone entity much as General Motors did with Delphi Corp. Visteon is widely expected to file for bankruptcy protection; Delphi has been in Chapter 11 bankruptcy since October 20005.
Visteon's filing could come as soon as late March, when an interest payment of more than $15 million is due on $440 million in bonds that are trading at a fraction of their original value, Bloomberg News reported.
Another automotive supplier, American Axle, has been notified that its stock could be
delisted as well if it does not meet the NYSE's criteria for market capitalization and other measures.
The value of American Axle's stock had traded as high as $25 during the last year. On Thursday morning, it was trading at 65 cents a share. The Detroit supplier expects to submit a plan in 45 days to the New York Stock Exchange explaining how it can meet the exchange's criteria during the next 18 months, the company said in a statement on its Web site.
Detroit-based American Axle was formed in 1994 by spinning parts operations from GM into a separate company, headed by high-profile, former Chrysler executive Richard Dauch. The global supplier makes designs and assembles axles, drivetrains and chassis systems. GM is its biggest customer.
American Axle was in the news last year when its workers went on strike -- a strike that closed a number of GM plants, costing the automaker millions in lost revenue.
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