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Escada improves bond exchange offer

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.

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