Chicago, IL – Encina Business Credit, LLC (EBC) announced today that it has provided a $30 million Debtor-In-Possession (DIP) facility to American Apparel (USA) LLC, a vertically integrated manufacturer, distributor and retailer of branded fashion basic apparel products. 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 – $50 million and secured by accounts receivable, inventory, machinery & equipment and real estate. The platform lends to both privately-owned (sponsor and non-sponsor) and publicly-traded companies across a wide range of industries, including manufacturing, retail, automotive, oil & gas, services, distribution and consumer products. 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.
Encina Business Credit:
Marty Battaglia, Chief Executive Officer mbattaglia@encinaBC.com
Bill Kearney, Senior Managing Director wkearney@encinaBC.com