Acclaim closer to NASDAQ delisting

The news from Acclaim Entertainment cut both ways today. In various public filings with the Securities and Exchange Commission, the company stated that NASDAQ stock market regulators have begun delisting proceedings based on two facts: Acclaim's "inability to meet the minimum market capitalization continued listing requirements of the NASDAQ Small Cap Market, as set forth in Marketplace Rule 4310(c)," as well as its "failure to file its quarterly report on Form 10-Q for the period ended June 27, 2004."

Acclaim released a statement indicating that it intends to appeal the delisting decision and "expects to regain compliance as a timely filer once it files its Form 10-Q with the Securities and Exchange Commission."

There is a sliver of good news in today's filings, however. Acclaim said its primary lender, GMAC Commercial Finance LLC, has agreed to hold off on seeking legal remedies for monies it is owed pending the outcome of current negotiations Acclaim says are taking place with an alternate lender. However, if those negotiations bear no fruit, Acclaim said the logical outcome would be to file for bankruptcy protection.