LOS ANGELES, Oct. 6, 2015 /PRNewswire/ -- American
Apparel, Inc. (the "Company") (NYSE MKT: APP) announced today that
on October 5, 2015, the Company
received a notification letter (the "Notice") that the staff of
NYSE Regulation, Inc. has determined to suspend trading immediately
and commence proceedings to delist the Company's common stock from
NYSE MKT LLC ("NYSE MKT" or the "Exchange"). The Notice
states that the Exchange determined that the Company is no longer
suitable for listing and will commence delisting proceedings
pursuant to Section 1003(c)(iii) of the NYSE MKT Company
Guide. As disclosed in the Company's press release date
October 5, 2015, the Company and certain of its domestic
subsidiaries have voluntarily filed to reorganize under Chapter 11
of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the
District of Delaware (the "Bankruptcy Court"). The Notice
states that in reaching the delisting determination, NYSE
Regulation noted the uncertainty as to the timing and outcome of
the bankruptcy process, as well as the ultimate effect of this
process on the value of the Company's common stock.
The Company does not intend to appeal the delisting
determination. Therefore, it is expected that the Company's
common stock will be delisted from NYSE MKT.
As previously stated, the Company cautions that if the
restructuring transactions contemplated by the restructuring
support agreement filed in the Bankruptcy Court are consummated,
the Company's existing common stock will be extinguished and the
holders of the common stock will not receive any consideration.
Media Contact:
Weber Shandwick
Liz Cohen
(212) 445-8044
Arielle Patrick
(212) 445-8470
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SOURCE American Apparel, Inc.