Cosi Inc (NASDAQ:COSI) reported that it had obtained NASDAQ notice of delisting its common stock from the Listing Qualifications Department. As per Listing Rules 5110(b), IM-5101-1 and 5101, NASDAQ has decided that the firm’s stock will be delisted from its stock exchange platform.
Given the unrelenting NASDAQ listing requirements and the firm’s unresolved Chapter 11 cases, Cosi doesn’t plan to plea the NASDAQ decision of delisting the company’s stock. Trading of COSI common stock will be put off at the start of business on October 10. A Form ‘25-NSA’ has to be submitted with the SEC for the same purpose. After bring delisted from NASDAQ exchange, the company’s stock may be entitled to be listed on OTC marketplace, also called the “Pink Sheets.”
Management change
In last week of September, Cosi Inc reported that it has engaged Randy Kominsky as Chief Restructuring Officer, effective October 4, 2016. Mr. Kominsky has extensive experience working with creditors and companies in Chapter 11, turnarounds, crisis management and out-of-court restructuring. He has been with Alliance for Financial Growth since 1996 and also has served as CFO, board member, CEO and consultant to growth and troubled businesses, focusing on growing profitability and cash flows and advising on M&As.
Mr. Kominsky was also associated with Coopers & Lybrand where he served as the Senior Partner accountable for Chapter 11 reorganizations. He also looked after developing financial models, financial, operational and turnaround plans, and due diligence for the assets sale or infusion of fresh capital.
Mr. Kominsky will report to Cosi’s President and Interim CEO, Patrick Bennett, and will lead the firm’s restructuring initiatives during the course of the Chapter 11 proceedings. The terms of engagement and appointment remain subject to the consent of the Bankruptcy Court.
As stated earlier, Cosi along with its subsidiaries submitted Chapter 11 petitions on September 28. The engagement of a Chief Restructuring Officer approved by the lenders was something that was mandated by the terms of non-binding Debtor-In-Possession Financing Term Sheet. Cosi’s Board will manage the bidding procedure and assess the bids, in discussion with independent professional consultants.
