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American Apparel
American Apparel backer buys $10-million loan, helps prevent default
American Apparel backer buys $10-million loan, helps prevent default

A New York investment group has bought a $10-million loan as part of its efforts to shore up  American Apparel Inc.'s finances and keep it from teetering into bankruptcy. Standard General, which controls a nearly 44% stake in the Los Angeles clothing firm, bought the loan from lender Lion Capital this week, according to a Friday filing with the Securities and Exchange Commission. By purchasing the loan, the investment firm has helped American Apparel ward off a potential series of devastating defaults with other lenders. Lion Capital demanded repayment after the American American board ousted Chief Executive Dov Charney in June. That could have triggered repayment demands...

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