Former American Apparel lender asks court to nix exclusivity extension

By Caroline Salls

Pittsburgh, March 27 – A lender for APP Winddown, LLC, formerly American Apparel, LLC, objected to the company’s motion for an exclusivity extension, arguing that APP Winddown “should be able – and should be required – to put a plan together more promptly,” according to a Monday filing with the U.S. Bankruptcy Court for the District of Delaware.

Specifically, lender Standard General LP said the company’s only remaining task is to propose a plan of liquidation and return value to creditors.

“That task deserves the debtors’ full and prompt attention, and it should not take another four months to complete,” the objection said.

In addition, Standard General said the APP Winddown debtors have had at least two months since the completion of their asset sale to develop and discuss a plan, but they “have done nothing.”

According to APP’s extension motion, the company is now focusing on monetizing the remainder of its assets.

At the same time, APP said it is beginning to assess its options for exiting these cases, including a possible Chapter 11 liquidating plan.

The company said the proposed extension will allow plan discussions to continue.

American Apparel is a Los Angeles-based manufacturer, distributor and retailer of branded fashion basic apparel. The company filed for bankruptcy on Nov. 14 under Chapter 11 case number 16-12551.

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