A E Ropostale Will Sell Itself To Private Equity Funds

Although A e ropostaleInc. (NYSE:AROPQ) is at the expense of bankruptcy and litigation, it avoids falling into the hands of former shareholders and private equity fund Sycamore Partners ManagementLLC, but ultimately the American teenager.

The company still failed to escape the outcome of its private placement.

According to reports, private equity fund Versa Capital ManagementLLC has paid a lot for A e ropostaleInc..

Fees and 500 stores' rents in exchange for the acquisition of A e ropostaleInc.. The exact amount is not disclosed.

At the end of last month, A e ropostaleInc., who has applied for bankruptcy, said that "restructuring on an independent basis" has been "infeasible".

A e ropostaleInc. said in the latest court document that it will launch the "fake stalkinghorsebid" (August 15th), which is selected by the bankrupt enterprise, and the bidders can only increase the price to avoid bankruptcy companies accepting the proposal of lower price. The leading buyer will be selected and the proceeds from the sale of assets will be reimbursed to the creditors after the auction in August 18th.

It is reported that Versa Capital is a private equity fund focused on the acquisition of non-performing assets.

However, there is still uncertainty about the acquisition, because A e ropostaleInc. and former shareholder Sycamore Partners ManagementLLC are in dispute again after the reorganization is hopeless.

A few weeks ago, A ropostaleInc. and Sycamore Partners ManagementLLC reached a settlement agreement. The agreement stipulates that A ropostaleInc. should be restructured or sold by August 26, 2016. The operation of the dual track system has also been approved by the bankruptcy court.

Later, Sycamore Partners ManagementLLC asked A ropostaleInc. to abandon the restructuring and speed up the sale, when A e ropostaleInc. said it was negotiating with several capital buyers.

At the same time, A e ropostaleInc. is reviewing the creditor AeroInvestorsLLC, supported by the free Sycamore Partners ManagementLLC, over 11 thousand pages of documents and evidence, and said it would assess whether to prosecute both the Affiliated Companies and Sycamore Partners ManagementLLC.

According to the court documents, unless A e ropostaleInc. prosecute AeroInvestorsLLC, A ropostaleInc. shall pay the total amount of the loan of about $150 million.

A e ropostaleInc. will consider applying to the judge to dismiss or reduce the priority creditor level of AeroInvestorsLLC.

A e ropostaleInc. has also previously accused Sycamore Partners ManagementLLC, managing director of StefanKaluzny, that her intention is to destroy the finance of A ropostaleInc., so that he can buy it in the A ropostaleInc. bankruptcy reorganization, and supplier MGFSourcingUSLLC is one of the pieces of the company.

In 2015, A e ropostaleInc. criticized MGFSourcingUSLLC for overpricing, resulting in an additional payment of $25 million for the group. StefanKaluzny explained that it was to beautify the accounts of MGFSourcingUSLLC. Later, A e ropostaleInc. broke out MGFSourcingUSLLC to tighten the payment terms and stop the delivery of commercial goods, eventually pushing the retailer to bankruptcy.

Sycamore Partners ManagementLLC has consistently denied the accusation of A ropostaleInc..

According to statistics, sales of A e ropostaleInc. continued to decline in the first quarter of April 30, 2016, and losses are still widening.

Net sales fell 6.3% to $298 million 600 thousand over the same period, while net losses widened to $58 million 400 thousand from $45 million 300 thousand a year earlier, and the diluted share loss also increased from $0.57 to 0.73 US dollars.

A ropostaleInc. hopes to get more time to get through the upcoming homecoming season.

At present, the group is still being purchased by Li&FungLtd., the world's largest clothing and toy supplier, 0494.HK.

In the May 4th bankruptcy document, A e ropostaleInc. said it had $354 million 400 thousand in total assets and $390 million in debt.