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The
offer has the support of American Apparel founder and former
chief executive, Dov Charney, Hagan Capital and Silver Creek
said on Monday.
The investment will be managed by the private equity arm of San
Francisco- and Shanghai-based PressPlay Global, backed by Hagan
and Silver Creek.
The proposal includes $90 million of new equity and a $40
million term loan.
The enterprise value of the deal is above the valuation of $180
million-$270 million "publicly stated by the debtor in its
disclosure statement," the firms said.
The "debtor's plan is not feasible and will lead to poor
long-term recoveries for the company's stakeholders and put
thousands of manufacturing jobs in Los Angeles at risk," they
said.
American Apparel was not immediately available for comment.
Charney, who founded American Apparel in 1989, said in December
that he was exploring plans to revive the bankrupt company.
Cardinal Advisors LLC is Charney's financial adviser for the
deal and Proskauer Rose LLP is the legal adviser to Hagan
Capital Group and Silver Creek Capital Partners.
(Reporting by Subrat Patnaik in Bengaluru; Editing by Kirti
Pandey)
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