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American Apparel confirms prearranged plan

February 2016

Client(s) American Apparel, Inc.

Jones Day represented American Apparel, Inc. as lead debtors' counsel in its 2015 chapter 11 cases which filed for bankruptcy in October 2015. American Apparel, a vertically integrated manufacturer, distributor, and retailer of fashion-basic apparel, sought chapter 11 protection in October 2015 to effectuate a prearranged joint plan of reorganization to swap $230 million in debt for equity. The plan was financed with $40 million of exit capital and a commitment for a $40 million asset-backed loan. The plan substantially de-levered the company's balance sheet, reducing interest expense by $20 million per year, and resulting in a rare reorganization of a retail business. The plan was confirmed on January 25, 2016, and the company emerged from bankruptcy on February 5, 2016.

In re: American Apparel Inc., No. 1:15-bk-12055 (Bankr. D. Del.)

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