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American Apparel lender Lion Capital demands $10-million loan be paid

American Apparel lender Lion Capital demands $10-million loan be paid

The wealthy playboy behind American Apparel Inc.'s latest crisis isn't ousted Chief Executive Dov Charney. It's a London financier named Lyndon Lea.

American Apparel told securities regulators Tuesday that Lea's private equity firm, Lion Capital, has formally demanded repayment of the nearly $10 million it lent to the Los Angeles retailer, which carries a sky-high annual interest rate of 20%.

A default could throw the company into bankruptcy by triggering demands for repayment on additional debts. Those debts include a $30-million loan from Capital One and $206 million in senior secured notes — a kind of corporate IOU.

"It's like pulling on a thread of a cheap...

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