American Apparel Earns Approval For Contested $30M Bankruptcy Loan
After some pushback from the bankruptcy trustee for American Apparel’s previous Chapter 11 filing, the again-bankrupt retailer on Monday formally secured a previously announced $30 million financing package from Encina Business Credit, The Wall Street Journal reports. The bankruptcy trustee for American Apparel’s earlier Chapter 11 (from which it emerged in February) last week advocated this second bankruptcy action be shut down with prejudice, saying it is an “egregious” and prohibited effort to avoid the settlement payments the company should be making under the first plan. But Judge Brendan Shannon of the U.S. Bankruptcy Court in Wilmington, DE on Monday signed off on the financing agreement, saying he “appreciated” the agreements made among the creditors, debtors and pre-bankruptcy lenders. Read more at Retail Dive.
