NEW YORK — Spiegel Group Inc. reported Monday its shares have been delisted by the Nasdaq as a result of its delinquency in filing its fiscal 2001 Form 10-K and first quarter 2002 Form 10-Q with the Securities and Exchange Commission, among other public interest concerns.
Spiegel will be traded over the counter until the company restructures its credit facility, which, while no timeline was given, the company hopes to complete shortly.
On April 19, the Downers Grove, Ill.-based specialty and catalog retailer reported that due to greater than anticipated losses on the yet to be completed disposition of its credit card business, it would restate its earnings for 2001, a development that also delayed the restructuring of the firm’s credit facilities. Spiegel had expected to wrap up the restructuring by mid-April.
Spiegel believes that by having the new credit facilities in place prior to filing its late financial statements, it will receive an unqualified audit opinion from its outside auditor. “Our discussions are far advanced, the lead banks and the overwhelming majority of the bank group are in favor of the proposed agreement,” said Jim Cannataro, chief financial officer, in a statement.
In the meantime, Spiegel is relying on the $160 million in funding provided by its majority shareholder, Germany’s Otto Versand GmbH. Spiegel stated it has adequate liquidity to support its day-to-day operations, including making payments to all vendors in a timely manner.”