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Special Meeting of Endeavor Stockholders
11 Dec '07
3 min read
When this amount was recalculated under the applicable terms of the acquisition agreement, it was determined to be $13.5 million as of September 30, 2007, which amount is included in the aforementioned $15.8 million aggregate distribution. In addition, such $15.8 million aggregate distribution includes amounts to be distributed with respect to income earned after September 30, 2007.
As previously noted in the definitive proxy statement, from time to time American Apparel has failed to meet certain provisions of its credit facility agreements and term loan agreement.
American Apparel is seeking the consent of its lenders to the amended terms of the acquisition transaction with Endeavor, as noted in the definitive proxy statement, and also may be required to obtain a waiver for any technical defaults resulting from American Apparel's recent execution of an agreement to purchase certain production assets in an immaterial transaction and from any other action taken in connection with the closing of the transaction.
American Apparel has historically been able to obtain necessary waivers and modifications and expects to receive them for these events, however, it may not be able to obtain them prior to the closing of the business combination.
If American Apparel is unable to receive any necessary waivers or consents, additional fees could be assessed against American Apparel or the payment of its outstanding debt could be accelerated, which could adversely affect the ability of American Apparel to continue operations. If this should occur, the substantial majority of American Apparel's long term indebtedness would be recharacterized as short-term indebtedness to reflect the acceleration of such debt.
As previously noted in the definitive proxy statement, from time to time American Apparel has failed to meet certain provisions of its credit facility agreements and term loan agreement.
American Apparel is seeking the consent of its lenders to the amended terms of the acquisition transaction with Endeavor, as noted in the definitive proxy statement, and also may be required to obtain a waiver for any technical defaults resulting from American Apparel's recent execution of an agreement to purchase certain production assets in an immaterial transaction and from any other action taken in connection with the closing of the transaction.
American Apparel has historically been able to obtain necessary waivers and modifications and expects to receive them for these events, however, it may not be able to obtain them prior to the closing of the business combination.
If American Apparel is unable to receive any necessary waivers or consents, additional fees could be assessed against American Apparel or the payment of its outstanding debt could be accelerated, which could adversely affect the ability of American Apparel to continue operations. If this should occur, the substantial majority of American Apparel's long term indebtedness would be recharacterized as short-term indebtedness to reflect the acceleration of such debt.
American Apparel Inc
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