American Apparel Provides Update on Status of Accounting Evaluation
The restatement will result in a $33.4 million decrease in long-term debt and a corresponding increase in current liabilities. The restatement amount represents the $49.4 million borrowed under the revolving credit facility at December 31, 2008, net of $16.0 million which was refinanced on a long-term basis in the first quarter of 2009. This restatement will have no impact on the company's previously reported net cash flows, cash position, revenues, net income or comparable store sales. The company reached its conclusion based on its consideration of EITF 95-22, "Balance Sheet Classification of Borrowings Outstanding Under Revolving Credit Agreements That Include Both a Subjective Acceleration Clause and a Lock-Box Arrangement," as well as Statement of Financial Accounting Standards No. 6, "Classification of Short-Term Obligations Expected to be Refinanced."
- Companies:
- American Apparel