Alta Mesa Resources Inc. received notice that its common stock will be delisted from the Nasdaq Stock Market, days after it filed for Chapter 11 bankruptcy protection.
Concerns regarding the bankruptcy filing, residual equity interest of existing listed securities holders and concerns about the Houston-based company's ability to sustain compliance with listing requirements served as the bases for the delisting, according to Nasdaq's Sept. 13 notice to Alta Mesa.
Alta Mesa said that it would not appeal the delisting decision given the company's pending Chapter 11 cases and Nasdaq's listing requirements, according to the news release.
The STACK play-focused producer's common stock trading and warrants will be suspended at the opening of business Sept. 24, upon which Alta Mesa expects its common stock and warrants to be traded over-the-counter.
Alta Mesa said it filed for Chapter 11 restructuring amid a "historically challenging commodity price environment and a capital market that is highly constrained for energy companies." Executive Chairman Jim Hackett said the process would be the "best pathway" for Alta Mesa and Alta Mesa Holdings LP to restructure their balance sheets and regain much-needed financial flexibility.
