The pressure is mounting at American Apparel, the retailer of U.S.-made clothing that fired its founder last week.
One of the company's longtime lenders, Lion Capital, asked Thursday that a loan of about $10 million be repaid, according to a person familiar with the situation.
The terms of the loan - which came with a 20 percent interest rate - said that if the founder, Dov Charney, ceased to be chief executive, the loan could be declared in default. Two people familiar with the negotiations said that the loan was not yet in default and that talks were continuing.
American Apparel, which announced this week that it had hired investment bank Peter J. Solomon, has indicated that if the Lion Capital loan comes due, it will be able to pay it off.