Kmart Corporation (NYSE: KM) announced today that it has been informed by the New York Stock Exchange, Inc. (NYSE), that, prior to the market opening on December 19, 2002, the NYSE will suspend trading of Kmart's common stock and the trust convertible preferred securities previously issued by Kmart Financing I. The NYSE indicated that it will thereafter commence proceedings with the Securities and Exchange Commission to delist these securities.
As previously announced, the NYSE in July 2002 notified Kmart that it was not in compliance with the NYSE's continued listing requirements and that Kmart's common stock could be subject to delisting. Kmart expects that the Chicago Exchange and the Pacific Exchange, on which its common stock is also listed, will also suspend trading and commence delisting proceedings.
James B. Adamson, Chairman and Chief Executive Officer of Kmart, said, "We are working with the NYSE to facilitate a smooth transition to the OTCBB and do not expect the change in trading venue to affect our current operations or financial performance. In the meantime, we are continuing to work toward our goal of filing a proposed plan of reorganization with the bankruptcy court and emerging from Chapter 11 court protection as soon as practicable."
Kmart expects that its common stock and, subject to the interest of market makers, the trust preferred securities will be quoted on the OTC (over-the- counter) Bulletin Board ("OTCBB") beginning on December 19, 2002 under new ticker symbols. The OTCBB is a regulated quotation service that displays real-time quotes, last-sale prices and volume information in OTC equity securities. Additional information about the OTCBB may be found at www.otcbb.com . Kmart intends to issue a press release when its new ticker symbols have been assigned. Investors should be aware that trading in Kmart's common stock and the trust preferred securities through market makers and quotation on the OTCBB and the "pink sheets" may involve risk, such as trades not being executed as quickly as when the issues were listed on the NYSE.
Kmart Corporation is a mass merchandising company that serves America with more than 1,800 Kmart and Kmart SuperCenter retail outlets. Kmart in 2001 had sales of $36 billion.
Cautionary Statement Regarding Forward-Looking Information
Statements made by Kmart which address activities, events or developments that we expect or anticipate may occur in the future are forward-looking statements. Such forward-looking statements are and will be, as the case may be, subject to many risks and uncertainties, including, but not limited to, Kmart's having filed for bankruptcy and factors relating to Kmart's operations and the business environment in which Kmart operates, which may cause the actual results of Kmart to be materially different from any future results expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from these forward-looking statements include those set forth in Kmart's Annual Report on Form 10-K for the fiscal year ended January 30, 2002, Kmart's Quarterly Report on Form 10-Q for the fiscal quarter ended July 31, 2002 or in other filings made, from time to time, by Kmart with the Securities and Exchange Commission (the "Company Filings"). The forward-looking statements speak only as of the date when made and Kmart does not undertake to update such statements.
Similarly, these and other factors set forth in the Company Filings, including the terms of any reorganization plan ultimately confirmed, can affect the value of our various pre-petition liabilities, common stock and/or other equity securities. No assurance can be given as to what values, if any, will be ascribed in the bankruptcy proceedings to each of these constituencies.
A plan of reorganization could result in holders of Kmart common stock receiving no distribution on account of their interest and cancellation of their interests. Holders of Kmart common stock should assume that they could receive little or no value as part of a plan of reorganization. In light of the foregoing, the Company considers the value of the common stock to be highly speculative and cautions equity holders that the stock may ultimately be determined to have no value.
Accordingly, we urge that appropriate caution be exercised with respect to existing and future investments in Kmart common stock or in any claims for pre-petition liabilities and/or other Kmart securities.
SOURCE: Kmart Corporation
CONTACT: Kmart Media Relations, +1-248-463-1021
Web site: http://www.kmart.com/