NEW YORK, April 1, 2013 – The New York Stock Exchange (“NYSE”) announced today that the staff of NYSE Regulation, Inc. (“NYSE Regulation”) has determined to commence proceedings to delist the common stock (the “Common Stock”) of GMX Resources, Inc. (the "Company") --ticker symbol GMXR -- and the Company’s 9.25% Series B Cumulative Preferred Stock (‘the “Preferred Stock”) -- ticker symbol GMXR PR-- from the NYSE. Trading in the Common Stock and the Preferred Stock will be suspended immediately.
NYSE Regulation has determined that the Company is no longer suitable for listing. Pursuant to Listed Company Manual Section 802.01D, this decision was reached in view of the Company’s April 1, 2013 announcement that it filed a voluntary petition for relief under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the Western District of Oklahoma (“Chapter 11 filing”). In making its delisting determination, NYSE Regulation noted the uncertainty as to the timing and outcome of the bankruptcy process, as well as the ultimate effect of this process on the holders of the Common Stock and the Preferred Stock.
The Company had previously fallen below the NYSE’s continued listing standard requiring average global market capitalization over a consecutive 30 trading day period of at least $50 million and latest reported shareholders’ equity of at least $50 million and NYSE Regulation was awaiting the submission by the Company of a business plan under which the Company would have proposed to regain compliance within a specified time period, subject to NYSE Regulation’s acceptance of the plan. However, in light of the subsequent Chapter 11 filing, the company is no longer eligible to avail itself of the compliance plan process and the Company is subject to immediate delisting.
NYSE Regulation notes that it may make an appraisal of, and determine on an individual basis, the suitability for continued listing of a listed security in light of all pertinent facts and circumstances whenever it deems such action appropriate. In addition, NYSE Regulation may, at any time, suspend trading in a security and commence delisting proceedings if it believes that continued dealings in or listing of the security on the NYSE are not advisable.
The Company has a right to a review of this determination by a Committee of the Board of Directors of NYSE Regulation. The NYSE will apply to the Securities and Exchange Commission to delist the Common Stock and the Preferred Stock upon completion of all applicable procedures, including any appeal by the Company of the NYSE Regulation staff’s decision.
Additional information regarding GMXR’s Chapter 11 proceedings can be found at http://dm.epiq11.com/GMX or by calling 877-854-0023 (within U.S.) or +1-503-597-7711 (outside U.S.)
See Section 802.00 of the NYSE Listed Company Manual for continued listing criteria and procedure for delisting