Summary
FirstEnergy Corp. (FE) announced on November 18, 2020, that it received a notice from the New York Stock Exchange (NYSE) for non-compliance with continued listing requirements due to the failure to timely file its Quarterly Report on Form 10-Q for the period ended September 30, 2020. The company has been granted a grace period of six months, until May 17, 2021, to file the overdue report and any subsequent delayed filings to regain compliance. This filing also revealed significant internal developments. FirstEnergy has terminated three executives, including its former CEO, for violating company policies and its code of conduct, stemming from an internal investigation related to ongoing government investigations. The company is also re-evaluating its internal controls framework, which may identify material weaknesses. Furthermore, two senior members of the legal department have been separated. The company requires additional time to complete its quarterly review and closing procedures due to these circumstances.
Key Highlights
- 1FirstEnergy Corp. received a delisting warning from the NYSE for failing to file its Q3 2020 Form 10-Q on time.
- 2The company has a six-month grace period, until May 17, 2021, to file the overdue report and regain NYSE listing compliance.
- 3Three executives, including the former CEO, were terminated due to violations of company policies and code of conduct.
- 4The company is re-evaluating its internal controls framework, potentially identifying material weaknesses.
- 5Two senior legal department members have been separated from the company.
- 6The ongoing government investigations and internal reviews are contributing factors to the delayed SEC filing.
- 7The NYSE delisting notice has no immediate effect on the listing of the company's stock or its outstanding bonds.