SMCP SMCP SA

   By Joshua Kirby 
 

SMCP SAS said Wednesday that its controlling shareholder has failed to redeem bonds exchangeable into shares in the company, and that part of its stakeholding could be put up for sale this month.

The French fashion group said it had been informed that majority owner European TopSoho, a Luxembourg-based holding of Chinese conglomerate Shandong Ruyi Technology Group, had defaulted on bonds of 250 million euros ($290 million) due at the end of September. Underlying the bonds are shares in SMCP representing 37% of the company's share capital, with the exchange pledge enforceable from Oct. 19, it said. European TopSoho owns 53% of SMCP's shares.

Bond trustee GLAS has meanwhile informed the French markets authority that in light of the default, it is entitled to instruct 35 million SMCP voting rights, or 29% of the total, SMCP said. If GLAS enforces the pledge from Oct. 19, it would appoint a receiver to sell the pledged shares to a third party, the company added.

Write to Joshua Kirby at joshua.kirby@wsj.com; @joshualeokirby

(END) Dow Jones Newswires

October 06, 2021 07:39 ET (11:39 GMT)

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