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August 12, 2014
16:48 EDTAPPAmerican Apparel files to delay 10-Q
As previously disclosed, five of the seven directors of American Apparel resigned on July 9, and four new board members were appointed to fill the vacancies resulting from such resignations on August 2, and one new board member was appointed to fill the remaining vacancy on August 8. The new board needs additional time to review the financials and ask questions of management before the Company is in a position to finalize the financials to the Quarterly Report on Form 10-Q for the quarter ended June 30. In light of the foregoing, the process of completing the financial statements and the related information required to be included in the Quarterly Report could not be completed by the scheduled filing deadline for the Quarterly Report.
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October 6, 2015
19:35 EDTAPPAmerican Apparel pushes for restructuring under Standard General, Reuters says
Bankruptcy attorneys for American Apparel stated that the company is "in the early stages of an operating turnaround" under the control of hedge fund Standard General, reports Reuters, citing court proceedings. Reference Link
06:36 EDTAPPAmerican Apparel trading suspended by NYSE, delisting procedures commenced
American Apparel announced that on October 5, the company received a notification letter that the staff of NYSE Regulation, Inc. has determined to suspend trading immediately and commence proceedings to delist the company's common stock from NYSE MKT. The Notice states that the Exchange determined that the company is no longer suitable for listing and will commence delisting proceedings pursuant to Section 1003(c)(iii) of the NYSE MKT Company Guide. As disclosed in the company's press release date October 5, the company and certain of its domestic subsidiaries have voluntarily filed to reorganize under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware. The Notice states that in reaching the delisting determination, NYSE Regulation noted the uncertainty as to the timing and outcome of the bankruptcy process, as well as the ultimate effect of this process on the value of the company's common stock. The company does not intend to appeal the delisting determination. Therefore, it is expected that the company's common stock will be delisted from NYSE MKT.
06:27 EDTAPPAmerican Apparel eyed by Authentic Brands, NY Post reports
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October 5, 2015
05:23 EDTAPPAmerican Apparel files for Chapter 11 reorganization
American Apparel announced that it has reached a restructuring support agreement with 95% of its secured lenders to implement a pre-arranged financial restructuring. This reorganization will enable the company to implement a comprehensive transformation strategy to revitalize the business and brand, while keeping its production and operations in the U.S. Throughout the implementation of this process, American Apparel will continue to operate its business without interruption to customers, employees and vendors. The restructuring support agreement, which has been approved by the company's board, will substantially reduce the company's debt and interest payments through the elimination of over $200M of its bonds in exchange for equity interests in the reorganized company, and provide the company with access to financing during and after its restructuring. As part of this agreement, American Apparel, and certain of its domestic subsidiaries have voluntarily filed to reorganize under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware. The company expects to complete the restructuring within approximately six months. Under the restructuring support agreement, American Apparel's secured lenders will provide approximately $90M in debtor-in-possession, or DIP, financing. These supporting creditors have committed $70M of new capital to support the reorganization and recapitalization of the business. The company anticipates that such financing will be more than sufficient to fund its ongoing operations and pave the way for a successful reorganization. As a result of the reorganization, American Apparel's debt will be reduced from $300M to no more than $135M, and annual interest expense will decrease by $20M. American Apparel has filed with the Bankruptcy Court and expects to obtain approval for various customary motions for immediate relief to allow the company to make certain necessary payments to employees and suppliers that will permit it to continue operating without interruption during the initial phase of the restructuring. The company will pay all of its suppliers in full under normal terms for goods and services provided on or after the filing date of October 5. American Apparel's international operations are not affected by the reorganization in the U.S. The restructuring plan is subject to satisfaction of certain customary conditions, including approvals by the Bankruptcy Court. If the restructuring transactions contemplated by the restructuring support agreement are consummated, the company's existing common stock will be extinguished and the holders of the common stock will not receive any consideration, consistent with legal priorities.
05:19 EDTAPPAmerican Apparel files for Chapter 11 reorganization
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September 25, 2015
17:37 EDTAPPAmerican Apparel does not meet NYSE listing standards
On September 23, American Apparel received a notice from NYSE MKT stating that the Company does not meet continued listing standards of the Exchange as set forth in Part 10 of the NYSE MKT Company Guide. Specifically, the Notice states that, based on the Exchange's recent review, the Company was not in compliance with Section 1003(a)(iv) of the Company Guide because "it has sustained losses which are so substantial in relation to its overall operations or its existing financial resources, or its financial condition has become so impaired that it appears questionable, in the opinion of the Exchange, as to whether the Company will be able to continue operations and/or meet its obligations as they mature." As a result, the Notice states that the Company has become subject to the procedures and requirements of Section 1009 of the Company Guide. The Notice states that the Company must submit a plan of compliance to the Exchange by October 9 addressing how it intends to regain compliance with the continued listing standards of Section 1003(a)(iv) of the Company Guide by November 15. If the plan is accepted by the Exchange, the Notice states that the Company will be subject to periodic reviews including monitoring for compliance with the plan.

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