George Soros is supporting Crystal Financial, a Boston-based firm that is expected to extend a credit line worth $80 million to American Apparel the cash-strapped clothing chain. It means that the last year predictions of the brand to go oblivion in 2012 doesn’t come true.

Photo: American Apparel ad, from www.americanapparel.net

The controversial retailer has been lacking on cash since the beginning of 2012. According to the exclusive report made by The NY Post, the firm will immediately replace and expand a $75 million revolving credit line from Bank of America that matures in July. The credit agreement is said to be long term. American Apparel declined to comment but the people familiar with the matter said the deal to be closed this week.

Additionally, Lion Capital, a British-based fund that holds a term loan to American Apparel of nearly $90 million has approved the deal. Last fall the firm has blocked a bid by Los Angeles billionaire Ron Burkle to take over Bank of America’s credit agreement. It was done, because Lion Capital expected that Burkle might try to take control of the retailer using the asset-backed loan.

“But American Apparel’s improving sales lately have made the prospect of a bankruptcy, which could trigger a debt-holder takeover, less likely, insiders said,” reports The Post.

Lion Capital’s head financier Lyndon Lea who acquired men’s label John Varvatos is sure that American Apparel “is in the best shape it has been in in more than two years.”

In December, American Apparel was intended to generate a minimum of $20 million in earnings before interest, taxes, depreciation and amortization for 2011 but it turned out to be below $15 million. However, store sales raised by 11 percent in January and February, according to the company.