Ditech Holding Corp.’s stock is being delisted from the New York Stock Exchange, and the company is recommitting itself to finding an acquirer or other option that could improve investor value.
“The company has fallen below the NYSE’s continued listing standard that requires listed companies to maintain an average global market capitalization over a consecutive 30-trading-day period of at least $15 million,” Ditech said in a press release. “The company will continue to file periodic and certain other reports with the SEC under applicable federal securities laws. The suspension and commencement of delisting proceedings do not affect the company’s business operations.”
The company plans to trade its common stock and warrants in the over-the-counter market.
“However, there is no assurance that an active market will be maintained for the company’s securities,” Ditech added in the press release.
The company hired investment advisor Houlihan Lokey to begin exploring the possibility of a sale in June, and that effort is continuing, the company noted in its release.
Two of Ditech’s competitors have completed acquisitions. Ocwen Financial Corp. recently acquired PHH Corp. Also, a successor to failed thrift Washington Mutual purchased Nationstar, and is now operating under the Mr. Cooper brand name.
Ditech, a nonbank servicer and originator, previously operated as Walter Investment Management Corp. It began operating under the Ditech online lending brand after emerging from a recent bankruptcy.