erounds

Escada’s Bond Swap More Likely to Clear Hurdle, Analyst Says
July 29 (Bloomberg) — Escada AG, the German fashion house restructuring to avoid insolvency, improved its chances of survival by sweetening its offer to swap company debt, said Christoph Schlienkamp, an analyst at Bankhaus Lampe KG.
Escada will offer 10 shares per 1,000 euros of debt, the Munich-based company said late yesterday. As many as 2 million shares will be exchanged, and the stock will come from major investors and company executives, including Chief Executive Officer Bruno Saelzer and Russian millionaire Rustam Aksenenko.
“A lot of people had expected no improvement of the offer,” Schlienkamp said. “This increases the chances that debt holders will take advantage of the offer, and that Escada will not have to declare insolvency,” said Schlienkamp, who is based in Dusseldorf, and recommends selling the stock.
Escada is on the brink of bankruptcy and needs backing from 80 percent of bondholders to push through a restructuring that also includes a bank loan and new shares. Escada has sold a division, hired a new designer and scaled back its Italian accessories operations in a bid to turn the company around.
Wolfgang and Michael Herz, two heirs to the Tchibo coffee company, injected fresh cash into Escada one year ago by taking a minority interest. Wolfgang Herz is among investors contributing shares to debt holders, Escada said. The brothers today control a 24.9 percent stake, according to Escada.

Tags: fashion by admin
Comments Off

CEO says feedback for new bond offer positive
* Says may apply for state aid if bond swap successful
* Demand for new collection better than expected
(Adds quotes, detail on bond exchange, state aid, shares)
By Eva Kuehnen BERLIN, July 2 (Reuters) - The Chief Executive of German luxury fashion house Escada (ESCG.DE) said feedback for a crucial bond exchange to ensure the company’s financial viability was mainly positive, but its success was uncertain.
Escada’s future is entirely at the mercy of bondholders who have been asked to forego more than half of their investments as part of a rescue plan to avoid insolvency as early as August.
“Everything depends on this bond exchange,” CEO Bruno Saelzer said in an interview on Thursday, on the sidelines of the Berlin Fashion Week.
The tender period to exchange the 200 million euro ($282.2 million) bond started on Monday and Saelzer said feedback was mainly positive. “But it will still be a close call,” he added.
Escada — known for draping stars like Christy Turlington and Katie Holmes — needs an 80 percent approval rate to launch the next step of its rescue plan, an almost 30 million euro capital hike.
If the German fashion house manages to pull of its plan to cut debt — 187.6 million euros as of the end of April — raise cash and set up further credit lines, it will be financially secure to the end of 2010, Saelzer said.
Saelzer said he would then also consider applying for state aid to secure long-term growth but could not do so without first completing the bond swap as the company would not meet the various programmes’ criteria.
“We have already looked into it,” he said.
Escada shares, which dropped out of Germany’s small-cap index .SDAX last month, were up 0.78 percent at 1320 GMT.

Tags: fashion by admin
Comments Off

French well-known fashion life magazine “WAD” to celebrate its tenth anniversary to look for Converse, New Era and Fornarina cooperated together. This time saw is not the athletic shoes is not the hat is not the handbag, but is - the cake.
The French magazine “WAD” the inside content includes the photography, the street corner, the illustration, the phantom, the design space. Looking from its title page, will often fall into some traditional phantom confusion which “WAD” will express deliberately, but it solid will be cares about the phantom the strength, often in nevin, always traditional and modern technique union new quality of being worth looking. In the fashion circle, is not restricted in the fashion which “WAD” insisted, it often puts the judgment to with the fashion related domain, directs young people’s tidal current creativity including the most collar. The truth said that “WAD” actually not very France, actually many England London incisive unyielding.
Its tenth anniversary’s great day nature and the tidal current could not escape the relations, this always took to the people the infinite creativity as well as the pleasantly surprised magazine this time Converse, New Era and Fornarina three brand symbolic Shan Pin deducts with the cake indeed has an unconventional idea. Such lifelike just likes the artware the sweet snack baseball cap, the athletic shoes, handbag everybody should not give up eats them.

Tags: fashion by admin
Comments Off