American Apparel gets $30 million DIP facility

Encina Business Credit, has provided a $30 million debtor-in-possession (DIP) facility to American Apparel, which recently filed for Chapter 11 bankruptcy protection.



The DIP financing, which has been approved by the United States Bankruptcy Court for the District of Delaware, will be used by American Apparel for working capital as the company operates under Chapter 11 of the U.S. Bankruptcy Code.



Launched in March 2016, EBC is an independent asset-based lending platform targeting middle-market borrowers in the U.S. and Canada that cannot obtain required financing from traditional banks. The firm provides revolving lines of credit and term loans ranging in size from $5 to $50 million and secured by accounts receivable, inventory, machinery & equipment and real estate, Borrowers use loan proceeds to fund working capital, acquisitions, refinancings, growth, restructurings/turnarounds, debtor-in-possession (DIP)/exit financings and other special situations. Positive cash flow is not a requirement.