Raytech Corporation Receives Official Notice of Noncompliance with New York Stock Exchange Listing Standards
August 05 2005 - 4:10PM
Business Wire
Raytech Corporation (NYSE: RAY) ("Raytech") today announced that on
August 1, 2005, it was notified by the New York Stock Exchange
("NYSE") that Raytech is not in compliance with the NYSE's
increased continued listing standards. Raytech is considered "below
criteria" due to the fact that its total market capitalization is
less than $75 million over a 30-day trading period and its
stockholders' equity is less than $75 million. The NYSE will make
available on its consolidated tape beginning on August 8, 2005, an
indicator, "BC," indicating Raytech is below the NYSE's
quantitative continued listing standards. Under the rules and
procedures of the NYSE, Raytech must respond to the NYSE within 45
days with a business plan that demonstrates compliance with the
continued listing standards. As Raytech announced on June 24, 2005,
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 provided. In addition, on July 7, 2005,
Raytech and The Raytech Corporation Asbestos Personal Injury Trust
("Trust"), its largest shareholder, announced that the Trust
intends to undertake a going private transaction of Raytech. As
part of that transaction, the Trust entered into a Supplemental
Settlement Agreement with shareholders who were the environmental
creditors of Raytech in its 2001 Chapter 11 reorganization. The
settlement is conditioned upon receiving the approval of the United
States Bankruptcy Court for the District of Connecticut after a
hearing, which is scheduled for August 16, 2005. Upon completion of
the settlement, the Trust will own approximately 90.6% of the
outstanding shares of Raytech. The Trust then intends to undertake
a short-form merger of Raytech into a newly created subsidiary that
is wholly owned by the Trust, terminate the registration of the
stock with the Securities and Exchange Commission, and seek to
de-list the Raytech common stock from trading on the New York Stock
Exchange. The Company is engaged in discussions with NYSE staff
regarding the timing of the anticipated going private transaction.
Raytech Corporation develops, manufactures and supplies specialty
engineered friction and energy absorption components used in oil
immersed (wet) and dry transmission and brake systems for on- and
off-road vehicles. The Company also makes and markets specialty
engineered products for heat resistant, inertia control, and energy
absorption applications. Our products are typically found in
passenger cars, heavy-duty construction and agricultural equipment,
trucks, buses and logging, mining and military vehicles. Raytech
Corporation, headquartered in Shelton, Connecticut, operates five
manufacturing facilities in the United States, Germany and China as
well as two technology and research centers in Indiana and Germany.
The Company's operations are strategically situated in close
proximity to major customers and within easy reach of geographical
areas with demonstrated growth potential. Raytech common stock is
listed on the New York Stock Exchange and trades under the symbol
"RAY." Company information may be accessed on our Internet website
http://www.raytech.com.
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