ArthroCare Corp. announced today that it received a letter from the Nasdaq Listing Qualifications Panel (the “Panel”), dated January 14, 2009, stating that the Panel has determined to suspend and delist trading of the Company’s common stock on The Nasdaq Stock Market (“Nasdaq”). The suspension will become effective at the open of trading on Friday, January 16, 2009. ArthroCare has requested a review from the Nasdaq Listing and Hearing Review Council, which could result in staying the Panel’s decision to delist the Company’s common stock from Nasdaq. However, there can be no assurance that the request will be granted.
The Panel’s delisting notice constitutes an event of default under the Company’s credit agreement with a group of banks. The Company is seeking a waiver of the default from the banks. However, there can be no assurance that the waiver will be granted.