Charney, Ex-Workers Target American Apparel Ch. 11 Stay

By Pete Brush (February 4, 2016, 1:54 PM EST) -- Ousted American Apparel CEO Dov Charney and other former workers at the reorganizing retailer asked a Delaware bankruptcy judge Wednesday to lift a stay barring them from pursuing employment-related and other claims in Los Angeles, California, superior court, arguing that the company's insurance fund would bear any resulting liability. 

The motion was lodged less than two weeks after Charney's plan to reorganize the retailer was turned aside by U.S. Bankruptcy Judge Brendan L. Shannon in favor of a plan backed by bondholders that contemplates slashing roughly $200 million in debt via an equity swap.

"Cause exists to grant claimants relief from...

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