US: American Apparel extends credit deadlines
US fashion retailer American Apparel Inc has extended the maturity of two of its credit facilities by three months, the company reports.
The amendments, which it said modify certain covenants and impose additional obligations, apply to the company's revolving credit facility and second lien credit facility.
Discussions continue with its lenders and other parties regarding longer-term financing, the company said.
Dov Charney, chairman and chief executive officer, said: "We are pleased to have secured these extensions to our loan maturities given the current difficulties in the credit markets. We have also had discussions with our lenders about the possibility of lengthening the maturity of our debt into 2010, and we will continue these discussions while we pursue other financing alternatives.
"Our business has remained encouraging during the holiday season. We are set to close out a strong 2008 for American Apparel, in which we expect to have opened at least 80 retail stores and to have reported a double digit same-store sales increase over 2007. Most importantly, we look forward to continuing to enhance the productivity of our retail stores and drive free cash flow in 2009."
American Apparel employs over 10,000 people and operates more than 240 retail stores in 19 countries.
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