Now trading at under 25 cents, the company noted that NYSE continued listing standards require total capitalization of not less than $50 million of a 30-day trading period.

GAINSCO's average market capitalization for the 30 days ending Feb. 27 was $22 million and, on Mar. 4, GAINSCO's market capitalization of its common stock was roughly $6.4 million.

GAINSCO said it is involved in active discussions with the NYSE regarding its business plan. NYSE procedures indicate that listed companies that fall below continued listing standards generally have a period of time to respond to the NYSE with a plan to regain compliance.

The company also said that it its shares cease to be listed on the NYSE, it believes that an alternative trading venue will be available.

GAINSCO, a long-time player in the commercial lines market, reported on Feb. 7 that it planned to discontinue writing commercial lines insurance business due to continued adverse claims development and unprofitable results.

"The decision?was based on our conclusion that we can no longer expose our capital to the volatility, unpredictability and adversity of claims development of our commercial lines business," Glenn W. Anderson, GAINSCO's president and chief executive officer, said in a statement released at that time.

GAINSCO's commercial lines business segment produced approximately $70 million in gross premiums written in 2001. GAINSCO's business going forward consists of a nonstandard personal lines insurance operation in Florida that produced roughly $40 million in gross premiums written in 2001.

(GAINSCO's decision to enter the personal lines market is detailed in a profile of the company that was published in NU's Sept. 11, 2000, print edition.)

On Feb. 27, GAINSCO, reported a net loss for the fourth quarter 2001 of $62.2 million, or $2.98 per share. A $20 million boost in estimated ultimate claims liabilities and a $2.7 million provision for potential uncollectible receivables were among the charges that contributed to the net loss.

In early February, GAINSCO had indicated that, as of year-end 2001, it might be in breach of two covenants under terms of an existing credit agreement as a result of its operating losses. But when it announced its financial results for 2001, the company said it reached an agreement with its bank to resolve that breach and restructure its credit agreement.