MOMO'S BREAKOUT BOARD

[aries4747]

HTMXQ(.0335):Up 31% today. Perfect storm forming, IMO.

**BIG win this week in BK court.

http://www.suntimes.com/business/1529904,CST-FIN-HICKEY16web.article

April 16, 2009
BY SANDRA GUY [e-mail]

Hickey-Freeman Co., a subsidiary of Chicago-based menswear maker Hartmarx Corp., won a court ruling Wednesday that allows it to keep its license agreement for tailored suiting with Burberry Ltd.

Burberry, a London-based high-end clothier, had asked the U.S. Bankruptcy Court for the Northern District of Illinois to terminate its license because Hartmarx might be sold to a new owner.

Judge Bruce W. Black denied Burberry's request.

Hartmarx, a 125-year-old Chicago maker of Hart Schaffner Marx men's suits, filed for bankruptcy protection Jan. 23 after banks cut its U.S. credit lines. CEO Homi Patel has said he hopes to find a buyer who will keep the financially ailing company intact.

**KEIP deal will reward key insiders nicely if sale is completed by June 30th.

Posted by: aries4747 Date: Tuesday, April 07, 2009 11:45:37 AM
In reply to: None Post # of 365 [Send a link via email]
Hartmarx KEIP Approval Sought

The Bankruptcydata site today mentions the Court filing I highlighted last night.

http://www.bankruptcydata.com/
Business Bankruptcy Headlines for 04/07/09

Hartmarx filed a motion with the U.S. Bankruptcy Court for an order under 11 U.S.C. 105 and 363 and Bankruptcy Rules 6004 and 9014 authorizing the Debtors to implement a key employee incentive plan. According to the motion, “The KEIP establishes a target award for each of 31 Key Employees….These 31 employees were selected from approximately 2,650 total employees because they are vital to the Debtors’ continuing operations, restructuring process, and are likely to be considered vital to post-emergence operations. When selecting the Key Employees, the Debtors focused on which people are most critical to specific restructuring activities. Accordingly, the Key Employees are primarily managers in support positions, because the majority of the demands of the restructuring process are corporate, strategic and analytical in nature. Operations and sales employees remain generally focused on their operational duties, and the primary burden of the restructuring process falls on support and managerial departments, which are undertaking restructuring efforts in addition to their normal administrative tasks. Through this selection analysis, the Debtors have identified the Key Employees as the 31 individuals who are critical to the Company’s value maximizing strategies. The amount that any Key Employee ultimately receives will be an adjustment of his or her target award. The adjusted award amount distributed under the KEIP is a function of the timing and value of an Asset Sale or, if no Asset Sale, then the timing of the effective date of a non-liquidating plan of reorganization. The sum of each of the 31 individual target awards is $1,030,000.00….Depending on these factors, the adjusted award ranges from $206,000.00 to $1,545,000.00 in the aggregate. Specifically, in the event of an Asset Sale, the Target Award will be reduced by 50% if such a sale is not consummated by June 30, 2009. Likewise, if the Debtors emerge through a standalone plan of reorganization, the Target Award will be reduced by 50% if such a plan is not confirmed before September 30, 2009.”

** HTMXQ CEO selling of shares caused the pps to fall since April 1.

202,500 shares so far this week.
http://www.sec.gov/Archives/edgar/data/723371/000123287409000008/xslF345X03/edgar.xml

He's now holding 388,529 open market shares and 137,086 401K shares.

**Potential buyers are circling

Posted by: aries4747 Date: Saturday, March 07, 2009 4:49:14 PM
In reply to: None Post # of 365 [Send a link via email]
10 entities make offers, 3 would keep company intact.

Took a trip to my local library and read the Womens Wear Daily article entitled "HARTMARX SEEKS TO BE SOLD INTACT." Since the article is copyrighted AND subscription only, I can only quote small parts.

According to WWD:

"Sources at the troubled company, which filed for Chapter 11 bankruptcy protection on Jan. 23, said offers from more than 10 entities, including both private equity concerns and strategic buyers, were submitted by last week's deadline."

Now that the deadline has passed for buyers to enter bids, stage two of the sale process begins with Hartmarx meeting with potential buyers. WWD says that process began as early as March 5.

"Hartmarx did not release the names of potential buyers, but market sources indicate IAG, the apparel company led by Spencer Hays, is among the bidders, as is a Chicago-based venture capital group led by men's wear designer Joseph Abboud. Both declined to comment on their interest in the company."

"Last month, private equity firm Carlyle Group sought the bankruptcy court's permission to be put on the service list of all documents in the Hartmarx bankruptcy, a request that was approved on Feb 12. Why it would want all court documents remeains unclear. Calls to the firm weren't returned," says WWD.