FiberTower Corporation (FTWR) Receives Letter of Non-Compliance from Nasdaq Stock Market
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FiberTower Corporation (NASDAQ: FTWR) today announced that on December 12, 2011, it received a notice from the Listing Qualifications Department of the Nasdaq Stock Market notifying FiberTower that it has failed to meet the minimum bid price requirements for continued listing set forth in Nasdaq Marketplace Rule 5450(a)(1), which requires listed companies to maintain a minimum bid price of $1.00 per share. The notice has no effect at this time on the listing of FiberTower's common stock on the Nasdaq Global Market, and FiberTower's common stock will continue to trade on the Nasdaq Global Market under the symbol "FTWR."
In accordance with Marketplace Rule 5810(c)(3)(A), FiberTower has 180 calendar days to regain compliance with the Minimum Bid Price Rule. The Department will provide written notification to FiberTower that it has achieved compliance with the Minimum Bid Price Rule if, at any time before June 11, 2012, the minimum bid price of FiberTower's common stock closes at $1.00 per share or more for at least 10 consecutive trading days. If FiberTower does not regain compliance with the Minimum Bid Price Rule by the required deadline, FiberTower's common stock will be subject to delisting from the Nasdaq Global Market.
FiberTower previously announced that it had elected not to make the $1.3 million semi-annual interest payment due on November 15, 2011, with respect to its 9.00% Convertible Senior Secured Notes Due 2012 (CUSIP Nos. 31567RAA8 and 31567RAC4) (the "2012 Notes"). The indenture governing the 2012 Notes provides that the failure to make such payment constitutes an event of default after a 30-day cure period, which expired on December 15, 2011. As a result of FiberTower's continuing nonpayment of this installment of interest on the 2012 Notes, an event of default now exists under the indenture governing the 2012 Notes. The expiration of the cure period for this installment of interest under the 2012 Notes also constitutes an event of default on the Company's 9.00% Senior Secured Notes Due 2016 (CUSIP Nos. 31567RAG5 and 31567RAF7) (the "2016 Notes"). Recently, FiberTower commenced discussions with certain holders of the 2016 Notes and continues to evaluate all options available to manage its debt.
In accordance with Marketplace Rule 5810(c)(3)(A), FiberTower has 180 calendar days to regain compliance with the Minimum Bid Price Rule. The Department will provide written notification to FiberTower that it has achieved compliance with the Minimum Bid Price Rule if, at any time before June 11, 2012, the minimum bid price of FiberTower's common stock closes at $1.00 per share or more for at least 10 consecutive trading days. If FiberTower does not regain compliance with the Minimum Bid Price Rule by the required deadline, FiberTower's common stock will be subject to delisting from the Nasdaq Global Market.
FiberTower previously announced that it had elected not to make the $1.3 million semi-annual interest payment due on November 15, 2011, with respect to its 9.00% Convertible Senior Secured Notes Due 2012 (CUSIP Nos. 31567RAA8 and 31567RAC4) (the "2012 Notes"). The indenture governing the 2012 Notes provides that the failure to make such payment constitutes an event of default after a 30-day cure period, which expired on December 15, 2011. As a result of FiberTower's continuing nonpayment of this installment of interest on the 2012 Notes, an event of default now exists under the indenture governing the 2012 Notes. The expiration of the cure period for this installment of interest under the 2012 Notes also constitutes an event of default on the Company's 9.00% Senior Secured Notes Due 2016 (CUSIP Nos. 31567RAG5 and 31567RAF7) (the "2016 Notes"). Recently, FiberTower commenced discussions with certain holders of the 2016 Notes and continues to evaluate all options available to manage its debt.
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