Ambac Financial Group Inc. (ABKFQ), the second-largest bond insurer before the onset of the credit crisis, said the New York Stock Exchange notified the company that its share price has fallen below the exchange’s standard for continued listing.
The exchange requires that the average closing price of a listed stock be at least $1 over 30-consecutive trading days, Ambac said today in a statement distributed by Business Wire.
“Ambac has notified the NYSE of its intent to cure the price deficiency,” the company said in the statement.
In March, Ambac, which was stripped of its AAA financial guarantee ratings in 2008, told policyholders that it was segregating policies on which it expected to pay claims and halting payments on them.
Ambac rose 2 cents, or 2.9 percent, to 66 cents New York Stock Exchange composite trading before the release of the company’s statement. The shares, which traded as high as $96.08 in May 2007, fell as low as 35 cents in March 2009.
The New York-based bond insurer has six months from the date of the notice to achieve a closing share price and 30 trading-day average price of at least $1 in order to avoid the delisting of its shares, according to the statement.
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