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Schnitzer Steel Falls Short on Nasdaq Independent Director Requirement

11/03/2008 - Schnitzer Steel receives Nasdaq Staff Deficiency Letter indicating that the company was not in compliance with the independent director requirement for continued listing.

Schnitzer Steel Industries, Inc. has received a Nasdaq Staff Deficiency Letter on October 30, 2008 indicating that the company was not in compliance with the independent director requirement for continued listing set forth in Marketplace Rule 4350(c)(1). This rule requires that a majority of a listed company’s board of directors consist of independent directors.
 
Schnitzer’s non-compliance with Nasdaq’s rule resulted from the resignation of Mark Palmquist, an independent director of the company. Nasdaq is providing the company with a cure period until April 20, 2009 to regain compliance (assuming the Company’s annual meeting of shareholders is held on January 28, 2009, as scheduled). The cure period is being provided in accordance with Marketplace Rule 4350(c)(1).
 
At the date of Palmquist’s resignation, the Board of Directors had already engaged a professional recruiting firm to assist it in a search for an additional independent director. The recruiting firm has identified a number of candidates whose names have been submitted to the Board of Directors’ Nominating and Corporate Governance Committee.
 
Schnitzer Steel Industries is one of the largest manufacturers and exporters of recycled ferrous metal products in the United States with 39 operating facilities located in 12 states throughout the country, including six export facilities located on both the East and West Coasts and in Hawaii. The company's vertically integrated operating platform also includes its auto parts and steel manufacturing businesses. With an annual production capacity of nearly 800,000 tons, the company's steel manufacturing business—Cascade Steel Rolling Mills—produces finished steel products, including rebar, wire rod and other specialty products. The company commenced its 103rd year of operations in fiscal 2009.