US: Bernard Chaus in debt agreement with China Ting
Women's wear manufacturer Bernard Chaus has agreed a debt restructuring with its main supplier, the China Ting Group.
Bernard Chaus announced that some US$12m of trade payables will be converted into senior unsecured notes with a maturity of 1 September 2016.
The company, which manufactures the Vince Camuto, Josephine Chaus and Cythia Steffe brands, said it was "pleased" that China Ting has agreed to convert the bulk of its trade receivables into term debt, which will "substantially improve" its working capital position".
"We believe that this restructuring will satisfy one of the conditions of the proposals we have received from The Camuto Group to take the Company private," the company said.
The term notes bear interest at 5.25%, payable currently with the amortization beginning April 2013 with a final balance of $5m payable 1 September.
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