By  on July 29, 2009

BERLIN – As it fights to ward off insolvency, Escada has for the third time improved its exchange offer for bondholders as well as extending the exchange period.

The bond exchange, a key element of the German fashion house’s restructuring program, is now set to expire Aug. 11 rather than Aug. 5. Late Tuesday, Escada said bondholders would now receive 10 additional Escada shares for every 1,000 euros, or $1,422 at current exchange rates, in nominal value of the old bond. 

The offer requires a minimum acceptance quota of 80 percent. In mid-July, the company said a quota of 37 percent had been reached.

Escada also extended the subscription period for its 29 million euro, or $41.3 million, cash capital increase to Aug.  12 to allow the simultaneous settlement of both the exchange offer and subscription offer.

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