Lazare Kaplan Submits AMEX Compliance Plan, Results Expected by Mid-December

Lazare Kaplan International Inc. (LKI) submitted on Wednesday a plan to the American Exchange (AMEX), outlining the company's plan to regain compliance with the exchange's requirements for continued listing. LKI failed to submit its annual report for the fiscal year ended May 31, 2009.

LKI, a Diamond Trading Company (DTC) Sightholder based in New York City, said in a release that the exchange did not provided a timetable for its formal response to the plan, cautioning that the plan's acceptance is at the discretion of the AMEX.

The company is facing a possible delisting because it did not file the financial report, and its shares have ceased active trading since September 15.

If the AMEX accepts the plan, LKI expects that it will be subject to periodic reviews to determine whether it is making progress.

On September 18, LKI received a Deficiency Letter from the AMEX. The company announced that it is delaying filing its annual report in order to resolve “a material uncertainty concerning the collectability and recovery of certain assets” and “the company's potential obligations under certain lines of credit and a guaranty.”

LKI said it is working “diligently” to resolve the unspecified material uncertainties and address the noncompliance. “The company believes that the plan provides a reasonable basis upon which the material uncertainties can be resolved in a timely manner so that the company would be in a position to file the Form 10-K prior to December 15, 2009.”

The diamond firm said it intends to take steps to trade on the over-the-counter market should AMEX approval of the plan not be forthcoming.