American Apparel secures interim approval of $90 million DIP facility

By Caroline Salls

Pittsburgh, Oct. 6 – American Apparel, Inc. received interim court approval of a proposed $90 million of debtor-in-possession facility, according to an order filed Tuesday with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, the loan is comprised of $30 million in new-money financing and a roll-up of a $60 million pre-bankruptcy facility.

Under the interim order, the company can borrow up to $10 million, plus amounts necessary to complete a pre-bankruptcy ABL refinancing.

Wilmington Trust, NA is the administrative agent for the DIP financing.

Interest will be 7%.

The DIP facility will mature on April 5.

American Apparel, a Los Angeles-based manufacturer, distributor and retailer of branded fashion basic apparel, filed bankruptcy on Oct. 5. The Chapter 11 case number is 15-12055.

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