American Apparel Inc., Los Angeles, has obtained unanimous approval of all voting classes to accept its reorganization plan.
The company and its five affiliated debtors, the Official Committee of Unsecured Creditors and the Committee of Lead Lenders have reached an agreement, subject to definitive documentation, on the key terms of an amended reorganization plan. It features a commitment for an additional $40 million of capital through an asset-based credit facility from a third-party lender.
“This is an important step forward in emerging from our restructuring process as a stronger, more vibrant company,” says Paula Schneider, American Apparel’s CEO. “We remain focused on executing our turnaround plan, and positioning American Apparel for the future by creating new and relevant products, launching new design and merchandising initiatives, growing our e-commerce business, and creating exciting and creative marketing campaigns to share the story of our progress.”
This announcement comes on the heels of reports that the company has received a $300 million takeover bid from an investor working with former American Apparel CEO Dov Charney. According to the Los Angeles Times, Hagan Capital Group and Silver Creek Capital Partners, the investors behind the bid, seek to bring Charney — who was fired in 2014 — back to the company as a co-CEO. A bankruptcy court judge will determine the future of the company on Jan. 20, according to the report. — L.V.
