ACA to be delisted from NYSE

I've been watching ACA the past week or so since my last post on the firm. ACA Capital is an insurer for holders of structured finance, providing insurance to firms that have invested in CDOs, including mortgage backed securities. Basically, probably the worst kind of business plan in existence right now, even if you include those that provide insurance for dog poop.

Anyway, the $hitpile has hit the fan, and ACA has been notified by NYSE that it will be delisted:

NEW YORK, Dec 13 (Reuters) - The New York Stock Exchange has notified ACA Capital Holdings Inc. (ACA.N: Quote, Profile, Research) that it is not in compliance with the NYSE's continued listing standards, the company said on Thursday.

ACA Capital is considered "below criteria" because its total market capitalization has been below $75 million over a consecutive 30 trading-day period and its stockholders' equity is less than $75 million, the company said.

John C. Ogg at 24 hr Wall St has more:

ACA Capital Holdings, Inc. (NYSE: ACA) has been notified by the NYSE that it had fallen outside of the NYSE’s continued listing standards and is now "below criteria" and will have a ".BC"status on teh NYSE tape. This is due to its total market capitalization being less than $75 million over a consecutive 30 trading-day period and its stockholders’ equity is less than $75 million. ACA Capital had 45 days from receipt of the notice to respond with a business plan that demonstrates its ability to achieve compliance with the continued listing standards. But that is all for naught.

ACA Capital said in its press release that it does not believe that it can take steps which will permit it to satisfy the financial continued listing criteria of the NYSE within the 18 month cure period. ACA Capital DOES NOT intend to submit a plan to the NYSE. ACA Capital has been informed by the NYSE that it will commence suspension and delisting procedures as a result of the failure to submit a plan.

He also mentions this bit of info that I didn't know before this morning:

Bear Stearns (NYSE:BSC) owned a huge slug of this company. Shares closed down $0.02 at $0.68 today, and the 52-week trading range is $0.22 to $16.55.

I didn't know that BSC had a big stake in ACA. Like they need any more trouble given the meltdown that they had in August. Shares of ACA are currently down 55%. Ouch.

Will update with more info if anything else happens.