American Apparel's Deal With Hedge Fund Nearly Complete
American signed a preliminary deal to that effect on Monday after Standard had gained a 44 percent stake in the company. Bloomberg reported Wednesday that a final agreement is nearly completed.
Terms of the agreement are expected to enable American Apparel to pay off a $10 million loan from Lion Capital on which it had defaulted. The default jeopardized larger amounts of financing for the retailer.
The deal isn't expected to immediately resolve the future of company founder Dov Charney, ousted last month amid accusations of misuse of company funds and sexual misconduct.
American Apparel is trading about even from Tuesday's close early in Wednesday's session.
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