IRVINE, Calif., April 12 /PRNewswire-FirstCall/ -- California
Coastal Communities, Inc. (Nasdaq: CALC) announced that on
April 9, 2010 it received a delisting
determination letter from the Nasdaq Hearings Panel informing the
Company that its common stock is scheduled to be delisted from the
Nasdaq Stock Market effective at the open of trading on
April 27, 2010. The Company
plans to seek review of the Panel's delisting decision by the
Nasdaq Listings and Hearings Review Council which may overturn the
Panel's decision.
The Company is hopeful that the Nasdaq Review Council will look
favorably upon the fact that the Company is in full compliance with
the continuing listing requirements of Nasdaq and the Panel's
delisting decision was discretionary and based solely on the
Company's inability to emerge from its voluntary Chapter 11
bankruptcy proceedings by April 26,
2010. The Company commenced the Chapter 11 proceedings
on October 27, 2009 in order to
extend the maturity dates and change the repayment schedules for
its approximately $182 million of
Brightwater credit facilities debt in order to be able to repay the
debt in full in 2014 based on currently expected home sales during
the next four years. There can be no assurance that the
Company's request to the Review Council will be granted or, if
granted, that the Review Council will decide that the Company's
common stock may continue to be listed on Nasdaq during the
pendency of the Chapter 11 process.
As previously reported, the Company received a delisting notice
from the Nasdaq Staff the day after commencing the Chapter 11
proceedings. In December 2009
the Company successfully appealed to the Panel and was granted
continued Nasdaq listing until April 26,
2010, upon which date the Company is presently required by
the Panel's decision to have emerged from the Chapter 11 process.
However, events beyond the Company's control such as the sale
of loan positions by certain syndicate members of the Brightwater
credit facilities, including KeyBank who was the agent for the
lending syndicates, to new parties have caused delays in the
Chapter 11 process that make it impossible for the Company to meet
the April 26 Nasdaq deadline.
Therefore, the Company requested that the Panel extend its
deadline so that the common stock would remain listed while the
Company completes the Chapter 11 process. Since the Panel has
refused to grant any further extension, the Company now intends to
submit the matter to the Nasdaq Review Council.
If the Review Council does not rule in the Company's favor and
the common stock is delisted from Nasdaq, the Company expects that
the common stock will not be immediately eligible to trade
over-the-counter on the OTC Bulletin Board or in the "Pink Sheets."
However, the common stock may become eligible for such trading if a
market maker makes application to quote the common stock in
accordance with Securities and Exchange Commission Rules and such
application is cleared.
The trading of the Company's common stock in the
over-the-counter market rather than on Nasdaq may negatively impact
the trading price and the levels of liquidity available to the
Company's stockholders. In addition, securities that trade
over-the-counter are not eligible for margin loans and will make
our common stock subject to the provisions of Rule 15g-9 of the
Securities Exchange Act of 1934, as amended, commonly referred to
as the "penny stock rule."
The Company is a residential land development and homebuilding
company operating in Southern
California. The Company's principal subsidiaries are
Hearthside Homes which is a homebuilding company, and Signal
Landmark which owns 105 acres on the Bolsa Chica mesa where sales
commenced in August 2007 at the
356-home Brightwater community. Hearthside Homes has
delivered over 2,200 homes to families throughout Southern California since its formation in
1994.
Safe Harbor Statement under the Private Securities Litigation
Reform Act of 1995
Certain of the foregoing information contains forward-looking
statements that relate to future events or the Company's future
financial performance. These statements involve known and
unknown risks, uncertainties and other factors which may cause the
Company's actual results, performance or achievements to be
materially different from any future results, performances or
achievements expressed or implied by the forward-looking
statements. In some cases, you can identify forward-looking
statements by terminology such as "may," "will," "should,"
"expects," "plans," "anticipates," "believes," "estimates,"
"predicts," "potential," "continue," or the negative of such terms
or other comparable terminology. These forward-looking
statements include, but are not limited to, statements about the
potential decision of the Nasdaq Listings and Hearings Review
Council, the Company's plans, objectives, goals, expectations and
intentions, the number and types of homes and number of acres of
land that the Company may develop and sell, the timing and outcomes
of any such development, the timing and outcomes of court
proceedings, lender negotiations, regulatory approval processes or
administrative proceedings, cash flows or sales, and other
statements contained herein that are not historical facts.
SOURCE California Coastal Communities, Inc.