Monday, March 31, 2014

Anonymous Commenter on LDK Delisting

In the comments section of earlier post:

This 180 degree turn on the delisting decision proves that NYSE Regulation is a potemkin village. There was no trading in the stock on Friday, nor a quoted market.

What happened to change their thinking over the weekend? Did someone actually read the release and figure out there was a death spiral convert involved in the securities issued to creditors?

The NYSE release on Friday about relisting the stock hit the tape 20 minutes after the 13 page LDK release about the prepack filing. The LDK release was dense legalese, was a poorly organized and structured document, and not clearly written.

Had the NYSE actually read the release? Were they working arm and arm with LDK to keeping those trading and listing fees coming in? Was the continued listing proffered with a wink and a nod to some future Chinese equity listing on the NYSE? Why did it take 11 and a half months for the NYSE to get around to delisting a company that had defaulted on its debt?

Coming on the heals of the Suntech fiasco that made a mockery of NYSE listing requirements, this latest NYSE circus act should remove any doubt as to whether efforts at regulation of listed companies are seriously intended to protect the interests of investors. Clearly they are not. NYSE Regulation should stop the pretense and just cease to exist.
Good questions.

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