A U.S. judge will decide on Monday whether teen retailer American Apparel can exit bankruptcy under the control of hedge funds or if he will allow a takeover bid by investors working with its controversial former chief executive, Dov Charney, Reuters reported yesterday. Los Angeles-based American Apparel Inc., known for its "Made in the U.S.A." fashion and sexually charged advertising, wants approval for a bankruptcy-ending deal that would cede control to hedge fund bondholders, including Monarch Alternative Capital. Charney has challenged that deal, and wants Bankruptcy Judge <b>Brendan Shannon</b> to reject the company plan and allow his partners to pursue their $300 million takeover. That bid is backed by two investment funds, Hagan Capital Group and Silver Creek Capital Partners, but was recently rejected by the company's board.
