GateHouse Media to NYSE: Keep Us On the Big Board!

By: Mark Fitzgerald GateHouse Media Inc. disclosed after markets closed Monday that it had submitted a plan to keep its listing on the New York Stock Exchange (NYSE).

GateHouse said its plan "includes, but is not limited to" continuing the suspension of its once-rich dividend and paying off its revolving credit facility, which it said was paid in full as of Sept. 30.

The Fairport, N.Y.-based publisher of 97 dailies and more than 400 weeklies and shoppers also said the plan includes "building cash for greater liquidity and utilization of future free cash flow for de-levering."

Since going public in 2006, GateHouse (NYSE: GHS) has gone from a must-have stock whose share price reflected a dividend payout much higher than usual for a newspaper company -- to a penny stock that has traded as low as 30 cents.

The stock, which in the past 52 weeks has traded as high as $12.87, began its collapse this summer. It has not traded above $1 since July 23.

Under NYSE rules, stocks that have a 30-day trading average below $1 a share or cannot maintain an average market capitalization of at least $75 million, are first suspended from floor trading, and then warned they risk delisting.

The Big Board's enforcement arm notified GateHouse in August that it was out of compliance, and demanded it file a business plan to move the stock price into compliance within six months, and its market cap within 18 months. Floor trading of GateHouse was halted, though it continues to trade on NYSE's electronic markets.

GateHouse was a rare newspaper sector stock that actually closed up Monday, gaining 3 cents, or 9.68%, to 34 cents a share.

"If the NYSE does not accept such plan, the NYSE will commence suspension and delisting procedures and will work with the Company on an orderly transition to an alternative market," GateHouse said in a statement.

So far this year, the NYSE has delisted two newspapers companies, Sun-Times Media Group and Journal Register Co. American Community Newspapers recently said it was taking action to remain listed on the American Stock Exchange (AMEX).