American Apparel Creditor Lion Capital Denies Loan Waiver
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American Apparel Inc. creditor Lion Capital LLP is demanding full repayment of its loan to the retail chain after the ouster of Chief Executive Officer Dov Charney last week, two people familiar with the matter said.
Lion, a British investment firm co-founded by Lyndon Lea, is informing American Apparel’s board that it won’t grant a waiver request from the retailer to keep the $10 million loan from going into default, said the people, who asked not to be identified because the decision isn’t public. Lion’s agreement with American Apparel allows the creditor to accelerate payment of the loan if there’s a change of management.