EANS-Adhoc: ESCADA decides on path for financial restructuring
ad-hoc disclosure pursuant to section 15 of the WpHG transmitted by euro adhoc with the aim of a Europe-wide distribution. The issuer is solely responsible for the content of this announcement.
23.04.2009
Munich, April 23, 2009 - Today the Board of Management of ESCADA AG decided with the approval of the Supervisory Board on the path for the company's financial restructuring. To ensure its survival, the company requires around 30 million euros to cover its liquidity demands for the current fiscal year, plus a significant reduction of the Group's debt and a secured mid- to long-term financial platform for the Group. In order to place the ESCADA Group on a long-term solid financial footing the implementation of four interdependent measures as one restructuring and recapitalization package is urgent and unavoidable.
The details for the following individual measures to be taken are presently still being fine-tuned:
1. Subject to the Annual Shareholders' Meeting on April 28, 2009 resolving
the planned capital reduction and creation of a new authorized capital, the
concept envisages a cash capital increase generating a cash-in of 30 million
euros and upholding the shareholders' subscription rights. The subscription
period for the new shares is scheduled for the end of June to the beginning of
July 2009. The equity holders 'BO-DO Vermögensverwaltung GmbH' (shareholder:
Wolfgang Herz) and 'MPS Erste Vermögensverwaltung GmbH' (shareholder: Michael
Herz), who together with additional shareholders have registered a stake of
24.9% in ESCADA AG's equity, would declare their willingness to invest an amount
of up to 20 million euros of above total, if the German Federal Financial
Supervisory Authority ("BaFin" - Bundesanstalt für
Finanzdienstleistungsaufsicht) issues a waiver on the duty to submit a mandatory
offer to the other shareholders pursuant to Sect. 37 of the German Securities
Acquisition and Takeover Act (WpÜG - Wertpapiererwerbs- und Übernahmegesetz),
and if the cash-in of a total of around 30 million euros actually is generated
and the three measures outlined in the following are realized. Negotiations are
being held with other interested parties.2. The bond issued in 2005 with a nominal volume of 200 million euros and due for repayment in April 2012 shall be restructured. ESCADA AG will submit a public offer for conversion to a new bond to all creditors of the bond so as to significantly reduce the burden of debt. By accepting the offer the creditors would contribute toward the recapitalization by relinquishing repayment of a significant portion of the bond and agreeing to the prolongation of the bond's term. The conditions of the exchange offer are currently being worked out.
3. In addition, the Board of Management is engaged in advanced negotiations with the banks financing ESCADA AG. The negotiations concern the further safeguarding of the Group's financing by upholding existing and/or granting new credit lines. A corresponding approval shall be obtained prior to the conversion period for the bond, subject to the other three measures being implemented.
4. Fiscal planning safety shall be established by requesting a binding statement.
It is planned to have the financial restructuring completed in the course of July 2009.
Mr. Wolfgang Herz, whose regular term as Supervisory Board member of ESCADA AG is due to expire on April 28, 2009 will not be available for election, as originally intended, at the Annual Shareholders' Meeting on the same day.
end of ad-hoc-announcement ========================================== ====================================== This press release is not an offer for sale of securities in the United States. Securities may not be sold in the United States absent registration with the United States Securities and Exchange Commission or an exemption from registration under the U.S. Securities Act of 1933, as amended. ESCADA AG does not intend to register any part of any offering in the United States or to conduct any public offering of securities in the United States.
end of announcement euro adhoc
Further inquiry note:
Frank Elsner Kommunikation für Unternehmen GmbH
Frank Elsner
Phone: +49 - 54 04 - 91 92 0
Email: info@elsner-kommunikation.de
Branche: Clothing
ISIN: DE0005692107
WKN: 569210
Index: SDAX, CDAX, Classic All Share, Prime All Share
Börsen: Börse Berlin / Open Market
Börse Hamburg / Open Market
Börse Stuttgart / Open Market
Börse Düsseldorf / Open Market
Börse Frankfurt / regulated dealing/prime standard
Börse München / regulated dealing