SECURITIES AND EXCHANGE COMMISSION
Self-Regulatory Organizations; Order Granting Application to Strike from Listing and Registration on the New York Stock Exchange, Inc. (Collins & Aikman Corporation, Common Stock, $.01 par value)
File No. 1-10218
June 29, 2005
On June 13, 2005, the New York Stock Exchange, Inc. ("NYSE" or "Exchange") filed an application with the Securities and Exchange Commission ("Commission"), pursuant to Section 12(d) of the Securities Exchange Act of 1934 ("Act")1 and Rule 12d2-2(c) thereunder2, to strike the common stock, $.01 par value, ("Security"), of Collins & Aikman Corporation, ("Company") from listing and registration on the NYSE.
NYSE Rule 499 states that securities admitted to the list may be suspended from dealings or removed from the list at any time. In addition, Section 802.01D of the Exchange's Listed Company Manual states, in part, that the Exchange is not limited by the criteria set forth in that section. Rather, the Exchange may make an appraisal of, and determine on an individual basis, the suitability for continued listing of an issue in the light of all pertinent facts whenever it deems such action appropriate, even though a security meets or fails to meet any enumerated criteria.
Other factors that may lead to a company's delisting include (i) among other things, conduct not in keeping with sound public policy or any other event or condition which may exist or occur that makes further dealings or listing of the security on the Exchange inadvisable or unwarranted in the opinion of the Exchange; or (ii) the failure of a company to make timely, adequate, and accurate disclosures of information to its shareholders and the investing public.
In the opinion of NYSE, the Security is no longer suitable for continued listing and trading on NYSE. The Exchange is taking such action in view of the overall uncertainty surrounding the completion of the Company's current financial statement filing requirements with the Commission, due to the previously announced audit-committee investigation into certain accounting matters and the anticipated restatement of its result. The Company has not yet filed its December 31, 2004 audited financial statements on Form 10-K, nor its results for the first quarter ended March 31, 2005 on Form 10-Q with the Commission. In addition, as noted in the Company's May 12, 2005 press release, the Company "continues to face significant near term liquidity challenges." Furthermore, the Company had also recently fallen below the Exchange's continued listing standard regarding average closing price of a security of less than $1.00 over a consecutive 30 trading-day period and closed at $.78 on May 11, 2005.
On May 12, 2005, the Exchange determined that the Security should be suspended from trading and directed the preparation and filing of this application with the Commission for the removal of the Security from listing and registration on the Exchange. The Exchange notified the Company of the Exchange's determination by letter on May 12, 2005. The Company had advised the Exchange that it anticipates being quoted on the Pink Sheets Electronic Quotation Service following the suspension. The Company had a right to appeal the determination to delist the Security to a committee of the NYSE's Board of Directors, provided that it filed a written request for such a review with the Secretary of the Exchange within 10 business days of receiving notice of delisting determination. The Company did not file such request within the specified time period.
The Commission, having considered the facts stated in the application and having due regard for the public interest and protection of investors, orders that the NYSE's application be, and it hereby is, granted, effective at the opening of business on June 30, 2005.
For the Commission, by the Division of Market Regulation, pursuant to delegated authority.3
Jonathan G. Katz