American Apparel Gets Approval Of Reorganization Plan From All Voting Classes

By Tonya GarciaMarketWatch Pulse

American Apparel said Monday that it has received unanimous approval from its creditors for its reorganization plan. American Apparel filed for Chapter 11 bankruptcy in Oct. 2015. The plan includes a $40 million capital commitment from a third-party lender or comittee of lead lenders. American Apparel said there will be an amended reorganization plan that will include an increase to the litigation trust to $500,000 and an agreement with the holders of the company's senior secured notes to waive their rights to a cash distribution. American Apparel will file the amended plan in the next few days with an approval hearing scheduled for Jan. 20 at 10 a.m. The effectiveness of the amended plan will be based on a $40 million commitment of exit capital in addition to the aforementioned $40 million from lenders, the release said. An investor group comprised of Hagen Capital Group and Silver Creek Capital Partners announced a separate $300 million acquistion offer on Monday.

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