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BUSINESS A25
Tuesday 6 October 2015
American Apparel files for Ch. 11 bankruptcy protection
NEW YORK (AP) — Ameri- money every year since company’s biggest share- not a surprise that the com- change for equity interests.
can Apparel has filed for 2010, with revenue wilt- holders, for defamation. pany is seeking protection, Lenders will provide about
Chapter 11 bankruptcy ing as competition from The Los Angeles company it will be interesting to see $90 million in debtor-in-pos-
protection almost a year fast-fashion retailers has in- said that its U.S. retail stores who will benefit from the session financing.
after ousting founder creased. — as well as wholesale and bankruptcy filing and what American Apparel’s board
Dov Charney, who is now The company is being sued U.S. manufacturing — will the business will look like af- has approved the restruc-
locked in a contentious a by ex-CEO Charney, who continue to operate. ter. turing plan, which is ex-
legal fight with the retailer. was fired in December fol- International stores are not The chain also said that it pected to be completed in
American Apparel cau- lowing allegations that he affected. American Appar- will pay all of its suppliers in about six months.
tioned in August that it had violated its sexual ha- el had approximately 227 full under normal terms for It still needs approvals from
didn’t have enough fi- rassment policy. retail stores in 19 countries goods and services provid- the U.S. Bankruptcy Court
nancing to keep operating Charney denies those as of Sept. 30. ed on or after bankruptcy for the District of Delaware.
for the next year and that charges. John Brooks, a former busi- filing on Monday. Shares of American Ap-
investors could suffer big Charney has also filed a $30 ness development manag- The plan will wipe out more parel Inc. plunged more
losses on their investments. million lawsuit against Stan- er for American Apparel, than $200 million in bonds than 24 percent before the
American Apparel has lost dard General, one of the said Monday that while it’s held by the retailer in ex- opening bell Monday.q
BMS paying $14.6M to settle SEC charges on payments in China
MARCY GORDON ture, of which Bristol-Myers This product image provided by Bristol-Myers Squibb shows the time imposed by a Chi-
AP Business Writer Squibb is majority owner, immuno-oncology drug Opdivo. Bristol-Myers Squibb will pay nese court.
WASHINGTON (AP) — inaccurately recorded $14.6 million to settle charges from U.S. regulators that its joint Eli Lilly & Co. agreed to
Bristol-Myers Squibb will the cash and gifts as le- venture in China gave cash and other benefits to government pay $29.4 million in 2012 to
pay $14.6 million to settle gitimate business expenses health care providers to boost drug sales. resolve SEC allegations of
charges from U.S. regula- in its books. The payments corrupt business practices
tors that its joint venture in allegedly were made be- (Bristol-Myers Squibb via AP) by its overseas partners in
China gave cash and oth- tween 2009 and 2014. China, Brazil, Poland and
er benefits to government Bristol-Myers Squibb was has promised higher health Britain-based GlaxoSmith- Russia. Also in 2012, Pfizer
health care providers to the latest multinational spending as part of efforts Kline Drug maker GlaxoS- Inc. agreed to pay $60
boost drug sales. drugmaker to be sanc- to spread more of China’s mithKline was fined $492 million to settle SEC alle-
The Securities and Ex- tioned for business prac- prosperity to its poor major- million by a Chinese court gations that its employees
change Commission an- tices in China. In China’s ity. But with a population of in September 2014 for brib- bribed doctors and other
nounced the settlement of health system, low salaries 1.3 billion, the cost of a full- ing doctors in China. It was health care personnel in
civil charges Monday with and strained budgets have scale overhaul is daunting. the biggest such penalty at China as well as Italy, Rus-
the company, one of the driven doctors, nurses and sia, Croatia and other East-
largest drugmakers in the hospital administrators to ern European countries.
world. Bristol-Myers Squibb, make ends meet by ac- In the latest settlement,
based in New York, makes cepting money from pa- the SEC alleged that Bris-
and sells prescription and tients, drug suppliers and tol-Myers Squibb failed to
over-the-counter medi- others. take action in response
cines worldwide. Many blame a system in to red flags indicating the
The SEC says sales person- which China’s hospitals payment of bribes by sales
nel at the company’s joint are nearly all state-run but staff in the joint venture,
venture plied staff at hospi- get too little money from including notations in inter-
tals owned or controlled by Beijing. Most of the coun- nal audits of the Chinese
the Chinese government try’s doctors are hospital joint venture. The drug-
with cash, jewelry, meals, employees and are barred maker neither admitted
travel and entertainment from adding to their in- nor denied wrongdoing in
to secure and expand pre- come by taking on second the settlement of alleged
scription drug business. The jobs. violations of the Foreign
agency says the joint ven- The ruling Communist Party Corrupt Practices Act. q
Trian becomes one of top GE investors, buying $2.5B stake
NEW YORK (AP) — Trian — and selling off its finan- Trian acquired 98.5 million holder returns in the years Trian took a stake in the
Fund Management is now cial operations. That, in a shares, or about 1 percent ahead as the company water and fluid-products
one of General Electric’s large part, is due to stricter of the Fairfield, Connecti- reshapes its portfolio,” Trian systems company Pentair
biggest shareholders after federal oversight by feder- cut, company. The fund’s said in a statement. and pushed it to consider
the firm led by activist in- al regulators in the wake of executives, Peltz and Ed Trian, unlike with other ma- acquisitions.
vestor Nelson Peltz placed the financial crisis. Garden, have a longstand- jor investments, has not Immelt, meanwhile, says
its largest bet to date, That push continued Mon- ing relationship with GE asked GE for board repre- GE is looking forward to
about $2.5 billion, as it posi- day with the $2.5 billion sale CEO Jeff Immelt. Rather sentation. constructive dialogue with
tions itself to play a role in of GE’s corporate aircraft fi- than seeking to force cor- In May, Dupont sharehold- Trian as it moves ahead
the transformation of the nancing unit to Global Jet porate changes from GE, it ers rejected a contentious with its transformation.
industrial conglomerate. Capital. The private com- appeared the Trian invest- campaign by Trian for seats General Electric shares rose
General Electric Co. has pany based in Boca Raton, ment was in support of Im- on its board. The fund had almost 4 percent, or $1.01,
refocused its trajectory on Florida, will get a portfolio melt’s goals. sought more influence at to $26.48 in morning trad-
its industrial roots — making of loans and leases, more “GE is executing a bold DuPont, saying that the ing Monday. Its shares are
large, complicated equip- than 300 aircraft and a transformation that will company was falling short up about 4.5 percent so far
ment for other companies team of GE employees. generate attractive stock- of its potential. In June, this year. q
