NYSE Regulation, Inc. announced today that it determined that the common stock of Penn Treaty American Corporation – ticker symbol PTA – should be suspended immediately.
NYSE Regulation, Inc. announced today that it determined that the common stock of Penn Treaty American Corporation – ticker symbol PTA – should be suspended immediately.
NYSE Regulation determined that the security is no longer suitable for trading in light of the Company's news announcement today regarding a proposed economic restructuring plan and the overall uncertainty as to the timing, outcome, and ultimate effect on the Company's shareholders.
We noted that, absent a binding letter of intent in connection with the Company's previously disclosed strategic alternatives review process by January 1, 2009, the Company has requested that the Pennsylvania Insurance Department place its insurance subsidiaries under voluntary rehabilitation effective January 2, 2009, as its primary insurance subsidiary would be considered insolvent under Pennsylvania statute. In connection with the plan, we noted that the Company has also voluntarily ceased the issuance of new policies nationwide effective immediately.
In addition, NYSE Regulation noted the fact that the Company was delayed in filing its December 31, 2007 Form 10-K and other quarterly reports with the Securities and Exchange Commission and was operating under a late filer trading extension period that would have extended through October 31, 2008. However, in light of the aforementioned developments, NYSE Regulation decided to take action to remove the Company.
The Company has a right to a review of this determination by a Committee of the Board of Directors of NYSE Regulation. Application to the SEC to delist the issue is pending the completion of applicable procedures, including any appeal by the Company of the NYSE Regulation staff's decision. The NYSE noted that it may, at any time, suspend a security if it believes that continued dealings in the security on the NYSE are not advisable. -- www.nyse.com
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