LOS ANGELES- American Apparel announces an official exit from bankruptcy. This announcement comes after an approval of reorganization in bankruptcy court on Jan. 27.
“I’m pleased to announce that our plan of reorganization, which was supported by our Unsecured Creditors’ Committee and our bondholders, unanimously accepted by our voting creditors and confirmed by the Court, has now enabled us to emerge from bankruptcy in just a few short months,” says Chief Executive Officer Paula Schneider, adding that this marked a “new day” for the embattled company.
The approval of the Jan. 27 exit plan also saw the rejection of a bid by former CEO Dov Charney. Charney, backed by a group of investors, had hoped to buy back American Apparel and return to the ranks.
The company’s reorganization includes the conversion of $230 million of bonds into equity and the transition as American Apparel from corporate form, into a limited liability company, making the company now officially known as American Apparel LLC.
“With the enormous debt burden removed, we can now turn our full attention to our strategic turnaround, which will benefit our customers, vendors, and employees,” adds Schneider.
For more information on American Apparel, LLC, visit: http://www.americanapparel.com