Officials at The Fairchild Corp. said the New York Stock Exchange agreed to let it trade for another month under its late filer rules. The additional period runs through August 16.
The company, which generates $350 million in annual revenues, reported that during the trading extension period, it expects its auditor, KPMG LLP, to finalize the audit associated with the company’s restatement through September 30, 2006, enabling it to issue its annual report for the fiscal year ended September 2006. However, if the company does not file the annual report by the August deadline, it will be permitted to submit additional materials and request a remaining trading period of up to five-months through January 16, 2008.
Fairchild officials noted that the documents will be reviewed by an NYSE Committee, which will make a determination regarding the company’s continued listing on the NYSE. It is somewhat unusual for a company like Fairchild, with a market capitalization of only $57 million, to remain on the NYSE. The average market cap of companies listed on the exchange is $11 billion, while the median is $2.4 billion
Fairchild is run by Jeffrey Steiner, a controversial former Wall Street executives who has been criticized for his large pay packages and lavish spending, and often makes headlines for throwing celebrity parties. In 1985, he became chairman and CEO of Banner Industries, which acquired Fairchild Industries in 1989 and changed its name to The Fairchild Corp. in 1990.
Today, Fairchild consists of Fairchild Sports, which includes Hein Gericke, PoloExpress and Intersport Fashions West. These businesses design, manufacture and sell protective clothing, helmets and technical accessories for motorcyclists. Banner Aerospace is a diversified family of companies forming the aerospace distribution division of Fairchild.
Last August, Steiner and Philip Sassower, chairman of The Phoenix Group, offered to buy Fairchild and take it private for about $68.3 million. In December, Fairchild announced that the “going private” discussions had been terminated.
