Former American Apparel seeks extension to await lender settlement

By Caroline Salls

Pittsburgh, Oct. 16 – APP Winddown, LLC, formerly American Apparel, LLC, requested a third extension of its exclusive periods for filing and soliciting votes on a Chapter 11 plan, according to a motion filed with the U.S. Bankruptcy Court for the District of Delaware.

APP wants to extend its exclusive plan-filing period to Jan. 12 from Oct. 15 and the solicitation period through March 14.

The company said its lenders are in negotiations around a potential settlement of their intercreditor disputes and, while APP has prepared working drafts of a Chapter 11 plan of liquidation and a disclosure statement, it is awaiting the conclusion of the lender negotiations to finalize those documents.

“By waiting, the debtors will avoid the unnecessary cost of finalizing and filing a plan that does not contemplate a settlement, only to amend it if and when a settlement is reached,” the motion said.

A hearing is scheduled for Nov. 29.

American Apparel is a Los Angeles-based manufacturer, distributor and retailer of branded fashion basic apparel. The company filed for bankruptcy on Nov. 14, 2016 under Chapter 11 case number 16-12551.

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