McLeodUSA off the Nasdaq list

0 Comments | Deseret News (Salt Lake City), Jun 20, 2005 | by Associated Press

CEDAR RAPIDS, Iowa -- McLeodUSA Inc., a high-flying telecommunications stock during the Internet bubble, said Friday its shares are being delisted by the Nasdaq Stock Market and warned anew it may file for bankruptcy again.

The company, which employs 2,300 people and provides telephone and data services in 25 states, said it will not appeal the Nasdaq decision, which takes effect June 23.

McLeod was notified June 14 that it no longer complied with Nasdaq requirements that companies maintain a minimum price of $1 per share and a total market value of $35 million for listed securities.

On Friday, those shares were down 2 cents, or 14 percent, at 12 cents. The stock has regularly traded below $1 a share since spring 2004.

The company switched from serving residential and business customers to focusing primarily on business clients after it emerged from bankruptcy in 2002. Its customer base and revenues have continued to decline since then.

The company announced in March that it was looking for a partner or a buyer, and that it again might seek bankruptcy protection. Last month, McLeod announced its lenders had agreed not to seek repayment of loans through July 21.

In April, McLeod reported a first-quarter operating loss of $82 million.