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Stock Market & Financial Investment News

News Breaks
March 18, 2014
17:32 EDTAPPAmerican Apparel to delay filing 10-K
The company is in the process of preparing its plan of compliance in response to the letter the company received from NYSE MKT indicating that the company is not in compliance with the continued listing standards of the NYSE MKT set forth in Section 1003(a)(iv) of the NYSE MKT Company Guide. As previously disclosed, in order to maintain its listing, the company must submit the plan of compliance by March 21 addressing how it intends to regain compliance with Section 1003(a)(iv) of the company Guide by April 15, and management has devoted considerable resources to the development of the Plan of Compliance. The company is also actively pursuing several possible financing alternatives as a means to increase the company’s available cash to fund debt service requirements and operational needs. Also, as previously disclosed, the company is engaged in discussions with Capital One Business Credit Corp. with respect to a waiver of the company’s noncompliance with, and event of default resulting from such noncompliance with, certain financial maintenance covenants under its credit facility with Capital One Business Credit Corp. for the fourth quarter of 2013 and an amendment to the Capital One Credit Facility that would reset such covenants going forward. The foregoing matters have had an adverse impact on the company’s ability to timely complete its Annual Report. The company’s staff and resources have been substantially committed to developing the Plan of Compliance and seeking financing alternatives, including its discussions with Capital One Business Credit Corp. In addition, any financing transaction or amendment and waiver with respect to the Capital One Credit Facility, depending on whether or not it were completed and the terms thereof, would impact the company’s financial statements disclosures as of and for the year ended December 31, 2013 and other information required to be disclosed in the Annual Report. The company would use the net proceeds from any such financing transaction to fund the Company’s near-term interest payments on certain of its indebtedness, including the April interest payment on its senior secured notes, and other liquidity needs. No assurances can be given that the Company will be successful in consummating any financing transactions or in obtaining any amendment and waiver of the Capital One Credit Facility when expected, or at all. In light of the foregoing, the process of completing the financial statements and the related information required to be included in the Annual Report could not be completed by the scheduled filing deadline for the Annual Report.
News For APP From The Last 14 Days
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March 27, 2015
06:31 EDTAPPAmerican Apparel sued by former CEO for $40M, Reuters reports
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March 26, 2015
06:07 EDTAPPAmerican Apparel says SEC issued formal order of investigation in February
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March 25, 2015
17:18 EDTAPPAmerican Apparel Reports Q4 EPS (16c), one estimate (2c)
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March 17, 2015
17:41 EDTAPPAmerican Apparel files to delay Form 10-K
The company is engaged in discussions with its revolving credit facility lender with respect to certain waivers and amendments to such facility that, among other things, would reset certain covenants going forward, permit the execution of the previously disclosed $15M credit agreement between one or more entities affiliated with Standard General and one or more of the Company’s foreign subsidiaries as borrowers and waive noncompliance with certain covenants. The Company’s staff and resources have been substantially committed to such discussions and the outcome thereof would impact the Company’s financial statements disclosures as of and for the year ended December 31, 2014 and other information required to be disclosed in the Annual Report. The Company intends to use the net proceeds from the Standard General Credit Agreement to fund the Company’s near-term interest payments on certain of its indebtedness, including the April interest payment on its senior secured notes, and other liquidity needs. No assurances can be given that the Company will be successful in obtaining such amendments and waivers or in consummating the Standard General Credit Agreement when expected, or at all. In light of the foregoing, the process of completing the financial statements and the related information required to be included in the Annual Report could not be completed by the scheduled filing deadline for the Annual Report.

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