Banking & Finance

ACA's Being Demoted To Pink Sheets? (ACA, BSC)

ACA Capital Holdings, Inc. (NYSE: ACA) has been notified by the NYSE that it had fallen outside of the NYSE’s continued listing standards and is now “below criteria” and will have a “.BC”status on teh NYSE tape.  This is due to its total market capitalization being less than $75 million over a consecutive 30 trading-day period and its stockholders’ equity is less than $75 million.  ACA Capital had 45 days from receipt of the notice to respond with a business plan that demonstrates its ability to achieve compliance with the continued listing standards.  But that is all for naught.

ACA Capital said in its press release that it does not believe that it can take steps which will permit it to satisfy the financial continued listing criteria of the NYSE within the 18 month cure period.  ACA Capital DOES NOT intend to submit a plan to the NYSE.  ACA Capital has been informed by the NYSE that it will commence suspension and delisting procedures as a result of the failure to submit a plan.

Shares of ACA have barely been public for a year since its IPO.  Bear Stearns (NYSE:BSC) owned a huge slug of this company.  Shares closed down $0.02 at $0.68 today, and the 52-week trading range is $0.22 to $16.55. 

ACA Capital Holdings provides financial guaranty insurance products to participants in the global credit derivative, structured finance capital, and municipal finance capital markets.  It should say “it did provide.”   If this one disappears completely it is possible that it will have another round of ripples with other investment banks because it was considered one of the backstops keeping the firms out of the soup.  Whether or not that is true today compared to one-month ago is a “pending matter.”

Pink Sheets here you come. 

Jon C. Ogg
December 14, 2007

Jon Ogg can be reached at; he does not own securities in the companies he covers.