Clothing manufacturer and retailer, American Apparel, has received a temporary waiver on its credit agreements from its lenders, The Wall Street Journal reports. The waiver effective until Feb. 11, 2011, will allow American Apparel not to maintain a minimum level of profitability over a certain period.
The New York-based company is negotiating with the lenders to obtain an amendment to the credit agreement or a permanent waiver. American Apparel, which had about $133.6 million in debt as of Sept. 30, 2010, is seeking the waiver to avoid defaulting on another agreement.
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