American Apparel LLC won court approval to use the rest of its $30 million bankruptcy loan after the retailer resolved issues with its unsecured creditors, the Wall Street Journal reported today. Bankruptcy Judge Brendan Shannon yesterday signed off on the loan and said that he “appreciated” the revised court papers and agreements made among the creditors, debtors and pre-bankruptcy lenders. The retailer secured a $30 million financing package from post-bankruptcy lender Encina Business Credit LLC to fund the costs of its chapter 11 case prior to its November bankruptcy filing. Judge Shannon earlier gave approval for the company to use up to $10 million of the loan.
