No later than May 14, 2009, United Fuel & Energy will file a notice of termination of registration and suspension of duty to file with the Securities and Exchange Commission (SEC) to conclude its reporting obligations under the securities exchange act of 1934. Accordingly, the company will be deregistered and no longer file certain reports with the SEC, including the Forms 10-K, 10-Q and 8-K.
The board decision to move its exchange listing and deregister its common shares with the SEC was based mainly on its view that conformity with the reporting obligations and necessities of the Sarbanes-Oxley Act of 2002 (SOX) are excessively expensive and unduly complex in relation to the company’s revenue, earnings and size. The board believes that its assessment will result in major cost decreases in the range of $600,000 to $800,000 in the first year and will facilitate organization to concentrate more strongly on delivering long-term shareholder value.
