American Apparel Chapter 11

Overview:

• American Apparel filed for Chapter 11 bankruptcy protection.
• The company converted $230 million of bonds into stock. 
• The company also obtained $40 million of exit capital and a $40 million asset-backed loan commitment.
• The reorganization resulted in a $20 million decrease of interest expense. 
• American Apparel is now a Delaware limited liability company instead of a Delaware corporation.
• FTI Consulting acted as restructuring adviser for American Apparel. 
• Ducera Partners acted as restructuring adviser to the bondholders. 

Rani Mehta - Journalist