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Stock Market & Financial Investment News

News Breaks
March 25, 2014
14:33 EDTAPPAmerican Apparel falls after announcing $30.5M secondary offering
American Apparel (APP) shares are down over 19% after the company announced this morning that it has commenced an underwritten public offering of $30.5M worth of shares of its common stock. Roth Capital Partners is acting as sole book-running manager and Brean Capital is acting as co-manager for the offering. American Apparel intends to use the net proceeds of the offering to fund working capital and for general corporate purposes, including its April 2014 cash interest payment on the company’s senior secured notes. WHAT'S NOTABLE: On February 20, the Wall Street Journal noted that American Apparel engaged lawyers at Skadden, Arps, Slate, Meagher & Flom LLP to work on restructuring options as the company faces softening sales and a large debt load. On March 6, American Apparel received a listing notice from the NYSE MKT. On March 18, the company filed to delay its 10-K, noting that it was "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" and adding that it "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." PRICE ACTION: American Apparel is trading down 14.5c, or 19.16%, to 61c per share. Shares of American Apparel have been trading below $1.00 per share since late January.
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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