When we last checked in on Ditech Holding Corp., the nonbank formerly known as Walter Investment Management, things weren’t going too well.
Earlier this year, the company emerged from Chapter 11 bankruptcy in February after successfully completing a financial restructuring plan that eliminated $800 million in corporate debt and changed its name to Ditech Holding.
But none of that was enough to stem the tide. Back in June, Ditech warned investors that it was exploring “strategic alternatives to enhance stockholder value,” that included possibly selling the company.
And it sounds like things haven’t gotten much better for the company over the last few months.
On Tuesday, Ditech notified investors that the company is being kicked off of the New York Stock Exchange due to the company’s incredibly low share price and market cap.
NYSE rules stipulate that a company must maintain an average global market capitalization of at least $15 million over a consecutive 30 trading day period.
Ditech didn’t do that; therefore the company is in violation of the NYSE’s continued listing standard.
And that means that Ditech is going to be delisted from the nation’s most prominent stock exchange.
It’s been a swift fall in the stock price department for Ditech. When the company emerged from bankruptcy, it began trading under a new symbol, “DHCP.”
When the company started trading again, Ditech’s stock rose to $10 per share. But over the last few months, the company’s stock has steadily declined.
By May, the company’s stock was trading between $5 and $6 per share. But in the last month, Ditech fell from in the $4 range to under $1 per share.
On Tuesday, Ditech’s stock closed at $0.98 per share. And then trading was suspended.
The company said that the suspension and commencement of delisting proceedings do not affect its business operations.
The company also said that it anticipates that its common stock and warrants will be traded in the over-the-counter market going forward, but the company cautions that there can be no assurance that an active market will be maintained for the its securities.
According to the company, it plans to continue filing periodic and “certain other reports” with the Securities and Exchange Commission, as per federal securities laws.
Separate of all that, the company said that its board is still exploring those “strategic alternatives” and will not discuss those plans “unless and until the company has entered into a definitive agreement that is material to the company or the company has otherwise determined that further disclosure is appropriate or required by law.”
The company said that there is no timetable for the completion of the strategic review.
Ditech is based in Fort Washington, Pennsylvania and currently has approximately 3,600 employees.