State-controlled Argentine energy company YPF said it risks having its American Depositary Shares (ADS) delisted by the New York Stock Exchange since it is not complying with all regulatory requirements.
The company stopped complying after the government took administrative control of YPF in mid-April. The president promulgated a law in early May to expropriate a controlling stake in YPF, which was owned by Spain’s Repsol.
YPF’s ADS price sank more than 6 percent after the news was reported, compared with a 2 percent decline beforehand.
In a filing to the US Securities and Exchange Commission, YPF said it stopped complying with the audit committee requirements as of April 16.
«If we fail to cure this deficiency, NYSE rules provide that the NYSE may initiate suspension and delisting procedures with respect to our securities,» the filing said.
«If our ADSs are delisted from the NYSE, there may be a limited market for our ADSs, trading in our ADSs may become more difficult and the price of our ADSs could decrease even further,» the company said. «In addition … our ability to raise additional capital would likely be impaired.»
buenosairesherald.com