CIM will not be delisted. Here's what I think is happening.
When the company decided to issue restatements, it was known that there would be a shareholder lawsuit. FIDAC and the auditor attempted to negotiate a division of the responsibility for the mistake, but couldn't agree, so they decided on arbitration. The arbitration was scheduled to result in a decision by early this month, so the necessary NYSE extension was obtained.
Although there's still a possibility that one of the parties will reject the arbitration decision, that would force the matter into open court, and neither party wants that. As of late December, CIM still could not schedule release of the restatements because the process was not yet complete. We're now down to the last few days. The 10K for 2011 is already done, but is awaiting a binding agreement on the part of both parties for it to be released. Although there could be a delay beyond 1/15, I would expect the delay to be no more than a week or two. Neither party wants this process drawn out further, but I believe that they want to get a judge to seal the documents from the arbitration, and to perhaps confirm the decision.
The new auditor has been working on the 10Q's for 2012, and they're almost ready to go. So the 10Q's for the first three quarters should be showing up within about 30 days of the 10K. The dividend announcement for the first two quarters of 2013 will provide downside protection to the stock price until all docs are out.
so....if this is the case, what exactly does that mean, once there is a 'settlement' between FIDAC and the auditor? Does that mean if the auditor is found responsible, there wouldn't be a lawsuit? Or would it just be directed at a different party (i.e. instead of FIDAC)?
CIM had better come forward and come clean with whatever docs they could produce between now and Jan. 15. Any further prolonging will be deadly. NLY buying it up would not solve anything as all audit numbers cannot be just botched out. If they cover up, it will be worse.
We'll see soon. If the price surges back to the high 3, then shareholders would have nothing much to complain about and to sue.