NASDAQ to delist AutoChina

AutoChina International (AUTC.NASDAQ) has received a notice from the NASDAQ stock exchange that its stock will be delisted as of September 19 unless the Chinese auto leasing company appeals the determination, AutoChina said in a press release Monday. NASDAQ’s Listing Qualifications Department rejected AutoChina’s request to delay filing its annual report for the period ended December 31, 2010 until the end of 2011, saying a review of public documents showed such a delay was not warranted. The letter also referred to an ongoing investigation by the US Securities and Exchange Commission that has been directed at a derivative liability relating to an earn-out share provision. AutoChina management said it plans to appeal the delisting decision. China Economic Review’s Company Reports team has questioned the performance of AutoChina in the past on the basis of its stated financials and its overall business model on February, 2011 and followed up in August. A review of all previous coverage is available here.