American Apparel OTC Shares Surge On $300 Million Takeover Bid

Shares of OTC-listed American Apparel Inc APPCQ surged higher by more than 17 percent on January 8 after various media sources reported that the company's ousted CEO, Dov Charney, is teaming up with investors to regain control of the company through an acquisition.

See Also: Ex-American Apparel CEO Eyes $200 Million Purchase Of Company, OTC Listed Shares Surge

The Los Angeles Times reported on Monday evening that American Apparel has received a $300 million takeover bid from a group of investors, led by Charney, Hagan Capital Group and Silver Creek Capital Partners.

The consortium of investors noted that the $300 million offer represents an "upward revision" from the initial reported offer of $200 million.

Meanwhile, American Apparel received approval for its reorganization plan that would take the company private and hand over nearly 100 percent control the company's largest bondholders.

A competing offer from the consortium of investors led by Charney signals a potential fight for control of the company.

American Apparels has a scheduled Bankruptcy Court date set for January 20.

Shares of American Apparel gained nearly 30 percent to close at $0.0370 on Monday.