WARREN - The federal judge hearing the bankruptcy case of First Place Financial Corp. has placed temporary restrictions on trading substantial amounts of the company's stock.
The share price being traded on over-the-counter markets fell Thursday to its lowest point, 2 cents per share.
The price began its free-fall after the company on Oct. 29 filed for Chapter 11 bankruptcy.
According to the court order signed Nov. 1, the ruling applies only to "substantial equityholders" or the owners of at least 905,793 shares of stock. According to the order, substantial equityholders must file a notice of intent to buy or sell the stock. That notice will be held for 20 days, allowing the debtor to file written objections to the proposed transaction. During that time, the information must be kept confidential.
The order was sought by the company in an attempt to limit unrestricted trading that could potentially harm the company's emergence from Chapter 11 bankruptcy.
U.S. Bankruptcy Court Judge Brendan L. Shannon ordered that the "trading restrictions and procedures set forth herein are reasonable and proper ...."