NovaStar No Longer Fit for NYSE - May Be Delisted

NovaStar Financial has been notified by the NYSE that their stock offering is no longer fit to be traded on the NYSE floor and may be delisted. NovaStar is appealing the decision, but there is no guarantee that the beleaguered subprime lender will be able to continue trading common stock at the NYSE. The trigger to this was NovaStar's decision to forego a shareholder dividend during the credit crunch which caused their standing as a Real Estate Investment Trust to be invalidated, changing their corporate structure to a C-corporation. This structural change also changes the requirements of net worth, market capitalization and other conditions that the company needs to satisfy to stay listed with the NYSE. From the release: NovaStar Financial, Inc. a residential mortgage portfolio manager