French fashion group SMCP on Tuesday said it would put in place an ad hoc committee to review its capital structure.
“The Board of Directors of the Company has considered it necessary to initiate a review of the recomposition of its capital with a view to stabilising and consolidating its shareholder base,” SMCP, owner of contemporary French fashion labels Sandro and Maje, said in a statement.
SMCP shareholders are dominated by a group of former bondholders including Blackrock and Carlyle which acquired a 29 percent stake in the company when its former majority owner, a unit of Chinese conglomerate Shandong Ruyi, defaulted on debt worth 250 million euros.
When taking its equity stake last year, the bondholder group had said that it intended to sell its stake to a third party. Earlier this month, they voted to oust five board members associated with Shandong Ruyi, the latest development in a legal battle between former and current shareholders of the French fashion group.
By Tassilo Hummel; Editing by Chris Reese and Leslie Adler
The future of French contemporary giant Sandro, Maje and Claudie Pierlot is at stake in a dispute between distressed Chinese shareholder Ruyi Group and its lenders.