AMERICAN APPAREL LOAN RESTRUCTURE: Per a regulatory filing on Friday with the Securities and Exchange Commission, New York-based hedge fund Standard General has purchased the rights to the $10 million loan American Apparel Inc. entered into last year with Lion Capital.
Standard General said it did so to “resolve any disputes over any alleged events of default under the credit agreement.”
The purchase is part of an agreement between Standard General and American Apparel earlier this month in which the hedge fund said it would give the retailer up to $25 million in funding, provide for a reconstituted board and give founder Dov Charney the temporary title of strategic consultant.
Charney was removed from his position as chief executive officer until there is a resolution of an internal probe regarding certain matters from financial to sexual improprieties, a move that triggered Lion Capital to call for an early repayment of its loan. Charney and the company are in arbitration proceedings over his ouster.