Confirming earlier reports, Standard General will provide $25M in "immediate financial support" to American Apparel (APP), and agree to "certain standstill and voting limitations through the Company's 2015 annual meeting."
As part of the deal, fired CEO/founder Dov Charney and 4 other directors will leave APP's board. They'll be replaced by 3 new directors chosen by Standard General, and 2 directors jointly chosen by the company and Standard.
APP's investigation into Charney's behavior will continue. The company will use its findings to "determine if it is appropriate for Mr. Charney to serve as CEO or an officer or employee."
The standstill agreement prohibits Standard and Charney from buying additional APP shares, and limits their vote to "no more than one third of the company's shares." Together, Standard and Charney own 44% of APP.