American Apparel, Inc. (fka APPCQ)

[LouisDesyjr]

Reason the buyout offer will not work, not enough money.

The former CEO probably will not be able to raise enough money to do the buyout. The problem is that it does not make any sense for the debt holders to agree to anything else except full payment, which is not realistic since the company is losing money still.

Form 8K for operating report for period ending Nov 30, 2015:
http://ih.advfn.com/p.php?pid=nmona&article=70022807

Form 10q for period ending June 30, 2015:
http://ih.advfn.com/p.php?pid=nmona&article=68200048

From the 8K report, stockholders equity is negative $225 million.

From the 10Q report, here is the long term debt, in millions:
Senior Secured Notes due 2020 $210,564
Standard General Loan Agreement $9,095
Standard General Credit Agreement $15,000
Other $248

Total $234,907


The $210 in debt million is a secured debt. Unless someone is willing to pay them off in full, there is no reason for them to agree to anything else besides completely taking over the company.

Louis J. Desy Jr.