Integrated Electrical Services says it will appeal NYSE suspension and delisting

By Sheri Kasprzak

New York, Dec. 22 - Integrated Electrical Services, Inc. said it intends to appeal the New York Stock Exchange's decision to suspend trading of its stock.

The NYSE, according to a statement from Integrated, plans to recommend that Integrated's stock be delisted.

If the company's stock is delisted, it must repurchase its senior convertible notes within 35 business days of delisting.

"If the notes are accelerated, it would cause a cross-default under its credit facility, senior subordinated debt, and surety bonding company agreement," said the statement from Integrated, referring to its 9.375% notes due 2009. "The company would not be able to pay the principal and accrued interest on those notes if that occurs. In addition, the company's credit facility restricts its ability to repurchase these notes."

Houston-based Integrated Electrical received notice of suspension after it announced on Dec. 14 that it is contemplating filing a prepackaged Chapter 11 plan of reorganization.

Separately, Integrated announced Thursday that it sustained a net loss of $129,623,000 for year-end 2005, compared with a net loss of $124,864,000 for year-end 2004.

The company installs communications and electrical lines for businesses.

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