BERLIN — As part of its ongoing restructuring plan, Escada is implementing a 29 million euro, or $41.2 million at current exchange, cash capital increase at a share ratio of 2-to-1, starting Thursday.
This story first appeared in the July 22, 2009 issue of WWD. Subscribe Today.
Shareholders will be offered one new share for every two they now own at a subscription price of 2.78 euros, or $3.95, a share. The subscription period runs from Thursday to Aug. 5.
At the same time, the German fashion house extended its current bond exchange offer, due to expire July 31, to Aug. 5 “to permit the simultaneous settlement of both the exchange offer and the subscription.”
Escada said shareholders, members of the management board and another investor had agreed to participate in the capital increase, but further noted these commitments were subject to the successful conclusion of the bond exchange. To avert insolvency, Escada needs an 80 percent acceptance rate.
Last week, Escada said the exchange offer had achieved a 37 percent acceptance quota and moved to extend the early-bird cash incentive for bond exchange participants from July 14 to July 31. That cutoff is now Aug. 5.