Nara Bancorp said Wednesday it faces the possibility of being delisted from the Nasdaq Stock Market because it failed to file its annual report by the end of March with the Securities and Exchange Commission.
The ethnic Korean bank holding company said in an SEC filing that it received a letter from Nasdaq on April 5, informing the company that its trading symbol will have an "E" appended to it at the opening of trading on April 7, with the possibility of being delisted by April 14.
Nara said it is working on getting the 10K filed as soon as it can, and it plans to request a hearing before a Nasdaq panel to explain why it should not be delisted. Manuel Ramirez, an analyst at Keefe Bruyette & Woods Inc. in San Francisco, said he wasn't concerned about a permanent delisting. "It's a formality," he said of the delisting notice.
Nara has also been jolted in the past two weeks by the forced resignations of its board member and former chief executive, Benjamin Hong, and its chairman, Thomas Chung.
Last week, the company announced it will restate its 2002 financial results after the bank's new president and chief executive, Ho Yang, discovered a $600,000 payment to Hong for reimbursement of automobile and country club expenses that was not properly accounted for. The board called for the resignations.
Shares of Nara have lost one-quarter of their value in the past month, and closed at $15.06 on Wednesday.
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