Investors in Santa Ana-based Grubb & Ellis Co. were unfazed Monday as the real estate investment company was warned of a delisting by the New York Stock Exchange.
The stock closed flat Monday with a market value of $39 million.
Grubb was cited for maintaining a market capitalization of less than $50 million for more than 30 consecutive days. Its last reported stockholder’s equity was less than $50 million as well.
The company said it expects to fix the problem and comply with the listing requirements. Grubb has 45 days to submit its plan of action and until Jan. 23 to raise the stock price to more than $1 a share. It closed Monday at 62 cents per share.
The threat of delisting won’t affect day-to-day operations at the brokerage.
The company also is facing some substantial debt issues.
In May, Grubb reworked a $38 million revolving credit line it had with a unit of Deutsche Bank AG. Among other provisions, the lender is requiring Grubb to pay back at least 72% of the credit line,a little more than $27 million,by the end of September.
The amount due isn’t as staggering as some looming debt faced by other Orange County companies. But it’s big for Grubb: It had $14.8 million in cash and investments as of June 30, plus $17.8 million in restricted cash.
The company hopes to rework its finances and pay off the credit line. If that doesn’t happen, the $38 million credit line and another related $29 million line could come fully due by January.
The outstanding balance on the two credit lines was $66 million as of June 30.
