Escada, the German luxury womenswear group, has improved its exchange offer for bondholders and extended its deadline, as it tries to raise cash for the business.
The bond exchange, a key part of the group’s restructuring programme, was previously set to expire on August 5 but this has been extended to August 11. It is the third time that the deadline has been extended. Bondholders will now receive 10 extra Escada shares for every €1,000 (£853) in nominal value of the old bond.
Escada launched plans to raise €29 million (£25.1m) in a rights issue in a bid to stave off insolvency earlier this month. Escada said it would offer shareholders one new bond for every two they currently own.
The capital raising is conditional on 80% of Escada shareholders agreeing to the restructuring of their bonds. Just 37% of shareholders are thought to have agreed to the restructuring so far.