Bankruptcy News

We've summarized the latest docket activity and news for publicly traded companies currently operating under U.S. Bankruptcy Court protection.

Bankruptcy/Chapter 11 / Retailing

American Apparel Plan Confirmed

The U.S. Bankruptcy Court entered an order confirming American Apparel's First Amended Joint Plan of Reorganization. Paula Schneider, American Apparel's chief executive officer, comments, "With this milestone behind us, we are now fully focused on executing our turnaround strategy as we continue working to drive revenue across our wholesale, retail and e-commerce businesses; create innovative, new and relevant products; launch new design and merchandising initiatives; and continue to deliver innovative and inclusive award-winning marketing campaigns." Once the Plan becomes effective, the Company's secured lenders will convert $230 million of secured debt into equity, provide $40 million of exit financing in the form of debt and equity and provide a $40 million asset-backed loan. This $80 million of incremental liquidity will support the turnaround plan and interest expense will decrease by $20 million. This branded clothing manufacturer and retailer filed for Chapter 11 protection on October 5, 2015, listing $294 million in pre-petition assets.

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