27 August 2009 16:33 [Source: ICIS news]
HOUSTON (ICIS news)--US biodiesel major GreenHunter Energy has convinced the New York Stock Exchange (NYSE) that it can meet criteria for continued listing of its shares, the financially beleaguered company said on Thursday.
NYSE told GreenHunter on 3 June that its stock was in danger of being delisted due to the exchange’s concerns about the company’s long-term viability. At the time, GreenHunter issuances were selling below $1/share, down from a high of $24/share in May 2008. GreenHunter shares were $2.01 in mid-morning trading on Thursday.
GreenHunter said the NYSE accepted a plan it submitted later that month to regain compliance. Company representatives did not immediately return calls asking for details about the plan.
However, a filing it made with the US Securities and Exchange Commission (SEC) at the time said it had reached an agreement with its main creditor, WestLB, to postpone debt payments until November 2009.
GreenHunter, based in Grapevine, Texas, suspended operations in April at its 105m gal/year (397m gal/year) biodiesel refinery in Houston, after a sharp drop in crude oil prices and sputtering demand made the economics of biodiesel too onerous. The refinery is the largest biodiesel facility in the US.
The company is working with an investment bank either to sell the refinery or bring it back to profitability.
Earlier this month, GreenHunter reported $4.5m (€3.2m) in net income for the second quarter of 2009, compared with a net loss of $7.3m during the same period of 2008.
Much of that income for the second quarter came from a $9m insurance claim it filed after Hurricane Ike made a direct hit on its refinery in September.
“Our ability to negotiate the final settlement of substantial insurance claims as well as sell and monetise certain non-core assets has, to date, provided sufficient working capital to keep our company viable,” company chief executive Gary Evans said when announcing the financial results.
($1 = €0.70)
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