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American Apparel has a toll-free reorganization hotline, accessible to U.S. callers at: +1 (877) 940-7795 and international callers at +1 (614) 779-0360.
Customers, employees, or other interested parties who may have questions related to the reorganization may call this hotline for more information. In addition, court filings and other documents related to the restructuring are available on a separate website administered by the Company's claims agent, Garden City Group, at www.gardencitygroup.com/cases/AAI.
$APP Stock Board Moderator
#AmericanApparel
#Lost_Angeles
#Investor_Gadget
\\CDP \"Tha IBM N3tw0rk G0d"
Not really any 'new news' to report on...so I'll just link to the latest "industry gossip".
But, considering they seemed to have already 'peaked' (fashion-wise) years ago...it not looking so "bueno" for AA. ESPECIALLY post-BK. Changing their 'image'? Long overdue.
Worst-for-the-wear (pun intended) is the fact that their SVP of Marketing doesn't seem to have a clue - but refers to the fact that all the 'same issues' are still present! She 1) infers that Dov isn't a large factor in the company (neither past, nor present); but then, 2) goes on to state that the folks that "built the brand" are still there! The "creatives". Well...if Dov wasn't much of a factor - and all the others are still there...then...simple math says that 3) THE PROBLEM HAS YET TO BE RESOLVED. And 4) more funding won't help that. (Get a grip!)
By the way: "Financial funding"??? Isn't that a redundant statement, Cynthia Erland? Funding (in and of itself) IS "financial", lady!
...I think you mean to say "Financing", maybe? [Sigh...]
#Cynthia_Erland
#American_Apparel
http://www.adweek.com/news/advertising-branding/how-american-apparel-rebuilding-its-brand-more-sizes-new-styles-and-fresh-marketing-170082
Usually reference to other tickers is 'off limits'...but I'll let the ref. slide (as I aptly agree with your illustration).
Watched $APP over many miles now; made my 'name' over @ VFC - so I know what's up...been 'close to the industry' 4 years!
...it's not over...
Your lucky not getting the bid filled
The order to terminate looks like it was put in after that market closed on Friday, so the shares will not open on Monday and are dead.
Louis J. Desy Jr.
lolll i had a bid in but no fill *shew*
Bankruptcy Plan Effective/Shares Cancelled
http://otce.finra.org/DailyList
Hope no one caught in that...
.0000000001
Go ahead, load up!
Well, you just load up and we will talk next week. Make sure you come back here next Friday, on Friday, Feb 5, 2016; after the court order announcing the effective date and the delisting notice from NASDAQ is posted, and then you will see how much the shares are worth.
Louis J. Desy Jr.
Nah mannnn that's just double talk to keep us from getting RICHIEFIED.
Buying? The plan was confirmed
http://www.ibtimes.com.au/american-apparels-bankruptcy-plan-confirmed-former-ceos-takeover-plan-rejected-1502228
The plan was confirmed on Monday. After the 8 or 10 day appeal deadline runs, the court will enter an order for the 'effective date'. The instant that happens, the shares will stop trading, be delisted and are dead.
Louis J. Desy Jr.
I will be buying all the way to RICH-TOWN!!!
I posted too quickly. Lol. It's already been answered. Yeah, I don't get it.
You would be amazed, the muppets pile in
You would not believe, no matter how much you try to explain the process to some people; how they can't or won't understand what is going on and what is going to happen. Some even buy more shares!
Over at Allied Nevada Gold (ANVGQ) there were people buying right up until the effective date was entered and the shares converted in almost worthless warrants that do not trade on any public market, and may never trade again, that were buying.
Over at Radio Shack (RSHCQ), there was one 'investor' that held onto the shares right up to the cancellation, I think they even added to the position, and even now still has some hope that the company is going to make a comeback and is 'holding' onto the shares!
Louis J. Desy Jr.
Who would be buyingbthe common stock here, if shares are being cancelled? If short, there is no reason to cover. You let it go to zero.
When shares will be canceled? Within 10 days
The shares do not get canceled yet. There is still an 8 or 10 day appeal time that has to pass by. Once that passes, the court will enter an order for the 'effective date' of the plan. When that happens, then the shares will be canceled.
That usually happens before or after trading for the day, but sometimes the court will enter the order in the middle of the trading day and the shares stop trading at once.
Louis J. Desy Jr.
The fat lady has sung.
Shares will be cancelled at the bell?
American Apparel defeats founder in bankruptcy plan fight
http://mobile.reuters.com/article/idUSKCN0V3232
are you in the courtroom now?
Bankruptcy Judge apparently a loser as well
He approved the bankruptcy plan set forth by the loser Paula Schneider and rejected Dov Charney and his takeover bid
Hopefully the east coast winter storm is on Dov favor!!!!
I wish you all the best of luck.
Common shareholders are going to get screwed. Look at their financials.
The only way this deal goes through is to erase the common shareholders.
When it comes down to the company either going bankrupt or getting a deal the common shareholders are in the way of the company surviving.
Take whatever I have to say with a grain of salt please.
We all want a happy ending :)
Dov is all about happy endings... According to the new Managment..
~I think he gets it back, let's see a Happy Ending!
I won't buy until I see that news hit.
Rather make a smaller profit, than lose it Alllll
; )~
This is a crap shoot play high risk high reward.....
We'll have no real choice
looks like charney needs to come up with a better bid else bankruptcy is on the cards. i have v tiny position, if no new offer by monday morning i will sell. good luck!
Judge to rule Monday on American Apparel bankruptcy exit plan
WILMINGTON, Del. (Reuters) - A U.S. judge will rule on Monday on a plan to bring teen retailer American Apparel out of bankruptcy under the control of hedge funds or give former chief executive Dov Charney a chance to finance a competing plan.
American Apparel Inc filed for bankruptcy in October and last month Charney and two investment funds presented a competing takeover plan that was rejected by the company's board.
U.S. Bankruptcy Judge Brendan Shannon in Wilmington, Delaware said at the end of two days of testimony he would rule Monday at 11 a.m.
http://reut.rs/1lAmPsH
The plans, secured plan vs former CEO
I think the problem is that the CEO plan to take over the company, gives the debt holders less than if the debt holders took over the company.
I also seem to remember that part of the plan was to issue new debt. A big negative against the plan is that, I am sure, the secured and unsecured do not want one of the people, the former CEO, who captained the company into disaster, to be back in charge again.
If the former CEO wants to really take over the company again, the only thing he has to do is buy out the secured debt at 100% cash, and then he could do whatever he wants. The fact that the secured are objecting tells me that while the CEO's plan is 'valued' at $300 million, is it not really worth that much, otherwise the secured debt would gladly take the cash and get out of this mess.
Louis J. Desy Jr.
FYI.. You can view all documents from BK proceeding here.. As they come in
http://cases.gcginc.com/aai/maincase.php
But the bankruptcy plan doesn't make the debt holders whole. They only get a portion of the debt. I think Charneys plan is equivalent to the bankruptcy plan but keeps the company in tact and holds some of the debt for repayment. Really EOD it is who gets to keep control or who gets control.. Investors or debt holders.
I'll have to go back and look for the estimated BK numbers but if you have them post them
Where did you see this? Do you have a link please?
Thanks for your insight and informative post.
While dov's return is a very long shot stranger things have happened.
What a wild story it will be if dov is able to wrangle the company back.
Breach of fiduciary duty
The problem is that the company is not really under the control of the board anymore. The board are more like managers for the bankruptcy estate that the company is in, and have to follow bankruptcy law and rules.
When a bankruptcy is filed, it creates a bankruptcy estate where everything up to the instant of the filing, is put into the estate. While the managers and board are usually still in place, they are running the company on behalf of the estate. There is a trustee that oversees the estate and the court to make sure the rules and laws for bankruptcy are followed.
Form 8K for operating report for period ending Nov 30, 2015:
http://ih.advfn.com/p.php?pid=nmona&article=70022807
In the situation here, there are two problem to saving the current common shares.
1: As of November 30, 2015; total liabilities are $470 million. In order to 'save' or preserve the existing common shares, a deal would have to be made that would make whole those secured and unsecured liabilities, which are higher in priority than the existing common shares. The deal was quoted as being worth $300 million, so while the secured liabilities might have been made whole, the unsecured would still have losses and have a right under the bankruptcy order of priority of the classes, to take all of the equity in the reformed company. In any case, $300 million does not make the holders of the liabilities whole and won't work or help the existing common shares.
2: There is a problem as to what the reformed company is worth. Even in November 2015 the company was still losing over $10 million per month. While that is not the holiday season, the company should be at least breaking even if it is going to become profitable, instead it is still losing money.
I expect that the secured debt holders are going to take over the company completely, and the unsecured liabilities and existing common shares will not have any recovery in the Chap 11 plan. I do not expect the former CEO will be able to raise enough money to buy out the company. Who would want to invest three or four hundred million in a company that is still losing money? My answer is that no one would do this.
Louis J. Desy Jr.
Certainly a breach of fiduciary duty would occur if the current board decides against making a decision that would prove much more valuable to shareholders. I would call it a usurping of power.
I'm not for charney or against. I'm for commons and any steps taken to protect common shareholders is the right one in my opinion.
Great development....judge is reviewing the 'superior offer'
American Apparel faces tussle for control at bankruptcy hearing
By Tracy Rucinski
CHICAGO, Jan 20 (Reuters) - American Apparel's former chief executive officer Dov Charney will take the stand in Bankruptcy Court on Wednesday in a last-ditch effort to wrest control of the ailing teen retailer from a group of hedge funds.
Los Angeles-based American Apparel Inc, known for its "Made in the U.S.A" fashion, filed for bankruptcy in October, saddled by debt, excess inventory and millions of dollars in legal claims tied to Charney.
American Apparel wants approval for a plan that will bring the company out of bankruptcy under the control of hedge fund investors, including Standard General and Monarch Alternative Capital.
Last week the company's board rejected a $300 million takeover bid involving Charney.
U.S. Bankruptcy Judge Brendan Shannon in Wilmington, Delaware must decide if the hedge fund-backed plan, which has the backing of a committee of the company's creditors, is fair and feasible.
Charney has filed the main objection, and the company's controversial founder plans to call himself as a witness, according to court documents.
As Wednesday's hearing approached, both sides continued to jostle through court filings to strengthen their position.
Lawyers for American Apparel said in a letter to the court the proposed takeover bid involving Charney and investors Hagan Capital Group and Silver Creek Capital Partners was now "dead" based on a deposition by lead investor Chad Hagan.
Hagan told Reuters on Tuesday the bid, which contemplates re-installing Charney as chief executive, is still alive, even though American Apparel failed to provide his group with important documents such as its quarterly accounts.
In the midst of the tussle, retail analyst Burt Flickinger said the best option for American Apparel, whose stock is trading at 3 cents, was quick court approval of the current bankruptcy plan given the deteriorating retail environment.
"Every day and week of delay adds viability risk to the plan," said Flickinger, who is managing director of retail consultancy Strategic Resource Group.
American Apparel, which has not been profitable since 2009, joins other teen-focused retailers including Wet Seal and Body Central Corp that have struggled with changing tastes.
Charney founded American Apparel in 1989, but was fired in December for allegedly misusing company funds and failing to stop a subordinate from defaming former employees. He has denied the allegations.
(Reporting by Tracy Rucinski; Editing by Andrew Hay)
http://finance.yahoo.com/news/american-apparel-faces-tussle-control-120001063.html
American Apparel Founder Charney in Court to Reclaim Company
American Apparel Inc.’s fired Chief Executive Officer Dov Charney spent Wednesday morning listening to his replacement describe the mess she said she found after taking the reins at the struggling clothing retailer.
Charney is in Delaware bankruptcy court this week seeking to persuade a judge to throw out American Apparel’s proposed reorganization plan in favor of one that lets him return to the company he created.
Current CEO Paula Schneider got the first word in Wilmington, testifying about the financial and organizational disarray she said she encountered last year when she was hired after the board ousted Charney. While her predecessor was in charge, too many managers needed his approval to do anything, she said.
“More than 70 people told me they reported to Dov,” Schneider told U.S. Bankruptcy Judge Brendan Shannon. To fix that, she had to “get people to get into their own lanes that we had to develop,” she said.
Charney, who declined to comment on Schneider’s testimony, is expected to return to court Thursday to press his claim that the board is sabotaging his effort to bring in buyers willing to improve on the Los Angeles-based company’s current reorganization plan. Under that proposal, senior lenders will trade their debt for control of the company, reducing its liabilities by about $200 million.
Hagan Capital Group and Silver Creek Capital Partners have offered to buy American Apparel and bring back Charney. Their offer, valued at about $320 million, was rejected by the board because it would add too much debt and because the retailer’s lenders opposed the offer, Schneider testified.
Schneider said she also had to change the sexually provocative advertising the company was known for under Charney. Billboards often featured young, scantily clad women. In Europe, the company faced lawsuits over its ads and Facebook wouldn’t allow them, cutting into Internet sales, Schneider said.
‘Tone It Down’
Schneider said she decided to “tone it down a bit.”
Charney listened to the hearing from the front row of the courtroom, dressed in a gray sport coat and tie, dark dress pants and white running shoes. During testimony, he handed several notes to his attorneys as they waited to cross-examine witnesses.
He was fired in 2014 when American Apparel’s board accused him of misusing corporate funds and violating the company’s sexual-harassment policy. He has challenged the allegations and fought his firing.
Under American Apparel’s reorganization plan, senior lenders including Monarch Alternative Capital LP, would take control of the retailer. To win the judge’s approval, the company must show the proposal is feasible, in the best interest of creditors and put together in good faith.
For Charney to win, he must first get Shannon to reject the proposal. American Apparel would then need to try to force Hagan’s offer on lenders and lower-ranking creditors.
That could take four months and require Charney and the funds backing him to pay off a $90 million loan that matures in February. They would also have to provide $40 million to $50 million more for the company to use while it pushes for approval of the new proposal, according to the court documents.
The case is In re American Apparel Inc., 15-bk-12055, U.S. Bankruptcy Court, District of Delaware (Wilmington).
SOURCE: http://www.bloomberg.com/news/articles/2016-01-20/american-apparel-opens-final-takeover-fight-with-founder-charney?cmpid=yhoo.headline