Edition:
United Kingdom

Debenhams Rejects Sports Direct's 200 Mln Stg Rights Issue Proposal, To Enter Administration


Tuesday, 9 Apr 2019 

April 9 (Reuters) - Debenhams Plc ::DEBENHAMS PLC - UPDATE ON REFINANCING DISCUSSIONS.COMPANY IS IN DISCUSSIONS WITH ITS LENDERS REGARDING AVAILABILITY OF REMAINING FACILITIES THAT HAVE NOT YET BEEN DRAWN DOWN.CONFIRMS THAT IT RECEIVED A REVISED, HIGHLY-CONDITIONAL, PROPOSAL FROM SDI IN EARLY HOURS OF 9 APRIL.CONFIRMS RELEVANT MILESTONES RELATING TO A POTENTIAL TRANSACTION WITH SPORTS DIRECT INTERNATIONAL WERE NOT MET BY RELEVANT DEADLINE.PROPOSAL FROM SDI IN EARLY HOURS OF 9 APRIL INDICATED A WILLINGNESS OF SPORTS DIRECT TO UNDERWRITE AN EQUITY ISSUE OF £200 MILLION.LIKELY THAT FACILITIES WILL NOW ONLY BE AVAILABLE TO SUBSIDIARIES UPON TRANSFER OF THOSE UNITS INTO OWNERSHIP OF LENDER-APPROVED ENTITY.DEBENHAMS, ON 200 MILLION STG PROPOSAL FROM SDI, SAYS LENDERS CONFIRMED PROPOSAL WAS NOT SUFFICIENT TO JUSTIFY AN EXTENSION TO 8 APRIL DEADLINE.TRANSFER OF SUBSIDIARIES INTO OWNERSHIP OF LENDER-APPROVED ENTITY WOULD RESULT IN NO EQUITY VALUE FOR CO'S CURRENT SHAREHOLDERS.TRANSFER OF UNITS TO OWNERSHIP OF LENDER-APPROVED ENTITY WOULD RESULT IN NO DISRUPTION TO BUSINESS, CUSTOMERS, EMPLOYEES, PENSION HOLDERS.