Escada, German’s fashion hub, announced last week that their finances are running low and face a debt construction deadline on July 31.
Almost half the creditors Escada needs to accept a bond exchange has agreed to it. Escada must convince their bondholders to change out their old notes for cash and new notes—amounting to 40 cents per one dollar. If Escada’s creditors don’t make the switch before the end of the month, banks will not discuss a new loan to support a capital of $41 million.
Escada was founded in 1976. Presently, the company has 182 stores and 225 franchises in more than 60 countries across the globe.
“Without a successful restructuring of the old loans, bankruptcy in the short term is unavoidable,” Escada chief executive, Bruno Saelzer said.
Source: New York Times
Sponosred by Seamless Underwear
No comments:
Post a Comment