American Apparel's new meltdown imperils Goldman Sachs stake
Wilmington, United States
GOLDMAN Sachs Group Inc and three other investors stand to lose as much as US$123 million after taking a chance on American Apparel Inc, only to see the troubled clothing maker file for bankruptcy for the second time in 13 months.
Goldman Sachs Asset Management LP, Monarch Alternative Capital LP, Coliseum Capital Management LLC and Pentwater Capital Management LP own 94 per cent of the iconic brand and hold US$189.2 million of its senior debt. For them to have any chance of recovering their investments, American Apparel will need more than the limited US$66 million bid it has attracted so far.
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