Logistical services provider CellStar Corp. said it has retained Raymond James & Associates Inc. to act as its investment banking adviser in assisting the company with the evaluation of its financial and strategic alternatives.
The move followed CellStar’s admitted inability to meet its previously announced plans to file a Form 10-K for fiscal year 2004 by May 31. The company said it needed more time to complete an independent review of certain accounts receivable and revenue issues in the Asia-Pacific region.
CellStar noted that as a result of the delayed filing it will be in violation of its secured domestic revolving credit facility, and it is in talks with Wells Fargo Foothill regarding a possible waiver. CellStar also said that it expects to be delisted from the Nasdaq National Market and could begin trading in the Pink Sheets.
CellStar’s stock was trading down nearly 40 percent early Friday at $1.34 per share, having plunged from its 52-week high of $7.39 per share set last July.
