Edgars 2

Edcon won’t be liquidated just yet after securing R1,5 billion bridge financing from bondholders and bank lenders to assist the retail giant restructure its debt.

Edcon Holdings last week approached holders of notes due in 2018 and 2019, requesting them to modify the debt terms in order to raise the capital (in euros and US dollars) needed to make the business more liquid and streamlined as it attempts to reduce its astronomical debt.

“This financing has the consent of key majorities of our bondholders and bank lenders and has been provided by a group of those creditors, which means they are showing an acceptance for our advancing strategic restructuring initiatives, devised with the support of Bain Capital Private Equity and a confidence in the future of the group,” Edcon CEO Bernie Brookes said in a statement.

The bridge financing, which has been authorised by the SA Reserve Bank, will be made available in two payments of R750 million each, Edcon said.

Towards the end of last year, Edcon (the owners of brands such as Edgars, Boardmans, CNA and Jet) successfully negotiated the extension of due dates on loans amounting to R7,9 billion and secured additional funding of R1,85 billion which reduced the retailer’s debt by R4,5 billion.

The retail group was thrown a lifeline in April when its investors agreed to delay payments of almost 80% of R13,9 billion of bonds due until December.

By delaying the payment, Edcon effectively saved R1,6 billion which the company said would be used to improve its liquidity and enable it to continue with its operational turnaround strategy.

Edcon’s troubles started in 2007 when the group was acquired by US company Bain Capital Partners in a private equity deal worth R25 billion.

The retailer has battled to maintain a balance between investing in new stores, expanding the group and paying the interest on Bain Capital’s debt.

Edcon’s once strong discount business unit – namely Jet, Jet Mart and Legit – has underperformed in recent months and is placing additional pressure on the group.

Analyst Jean Pierre Verster of asset management company 36ONE previously said the unit could potentially be sold off.

“We are seeing pressure on Edcon’s discount segment where sales have decreased,” he was quoted telling Business Report.

“This is a concern because it has been a strong performer in the past… It has the highest probability of being sold to address Edcon’s debt.”

Earlier this year, credit ratings agency Standard & Poor’s said Edcon’s capital structure remained “unsustainable” in the long term as a result of the group’s massive debt and interest costs as well as unhedged exposure to foreign exchange losses.

Edcon also announced that it had deviated from the norm of releasing its annual results in June, opting to delay the release of its audited results until its debt restructuring process has been finalised.

Source: http://www.destinyman.com

77 COMMENTS

  1. I just want to say I’m very new to blogging and certainly savored your page. Very likely I’m planning to bookmark your site . You absolutely have fantastic articles. Thanks a lot for sharing your blog.

  2. HeyHowdyHi thereHeyaHey thereHiHello! I knowI realizeI understand this is kind ofsomewhatsort of off-topic buthowever I hadI needed to ask. Does running aoperating abuilding amanaging a well-established blogwebsite likesuch as yours take arequire a lot ofmassive amountlarge amount of work? I’mI am completely newbrand new to bloggingoperating a blogwriting a blogrunning a blog buthowever I do write in my diaryjournal dailyon a daily basiseverydayevery day. I’d like to start a blog so I canwill be able tocan easily share mymy ownmy personal experience and thoughtsviewsfeelings online. Please let me know if you have anyany kind of suggestionsideasrecommendations or tips for newbrand new aspiring bloggersblog owners. Appreciate itThankyou!

  3. The post offers verified useful to myself. It’s really informative and you’re simply obviously very knowledgeable in this area. You have got opened up my personal eye in order to various opinion of this particular matter together with intriquing, notable and solid content material.

  4. I think other web-site proprietors should take this site as an model, very clean and great user friendly style and design, let alone the content. You are an expert in this topic!

  5. I’ve been exploring for a little bit for any high quality articles or blog posts on this kind of area . Exploring in Yahoo I at last stumbled upon this site. Reading this info So i am happy to convey that I’ve an incredibly good uncanny feeling I discovered just what I needed. I most certainly will make certain to don’t forget this site and give it a look regularly.

  6. I have a shopping cart site on Joomla. I want to add my wordpress blog to my joomla site. How do i do this? Many sites suggest using a tool called joomblog, but joomla shut that product down because messes with the core modules of the site. . . What do i do?.

  7. I am writing to let you understand of the incredible experience our girl experienced reading through yuor web blog. She noticed many things, including what it is like to possess an excellent helping spirit to make folks very easily grasp chosen hard to do subject matter. You really did more than people’s desires. Thank you for supplying such effective, healthy, informative as well as unique guidance on your topic to Evelyn.

  8. My spouse and IWeMy partner and I stumbled over here coming from afrom aby a different web pagewebsitepageweb address and thought I mightmay as wellmight as wellshould check things out. I like what I see so now i amnow i’mi am just following you. Look forward to going overexploringfinding out aboutlooking overchecking outlooking atlooking into your web page againyet againfor a second timerepeatedly.

  9. What i don’t understood is in reality how you’re now not actually a lot more smartly-favored than you might be now. You are very intelligent. You know therefore considerably when it comes to this subject, made me in my view imagine it from a lot of numerous angles. Its like men and women don’t seem to be involved except it’s something to do with Woman gaga! Your own stuffs outstanding. At all times care for it up!

  10. Very nice post and straight to the point. I don’t know if this is in fact the best place to ask but do you guys have any thoughts on where to hire some professional writers? Thx 🙂

  11. Thank you for the sensible critique. Me and my neighbor were just preparing to do a little research about this. We got a grab a book from our area library but I think I learned more from this post. I am very glad to see such magnificent info being shared freely out there.

  12. My spouse and i have been really joyous when John could carry out his investigations via the ideas he came across through your web page. It is now and again perplexing to simply be offering strategies that people may have been selling. We know we’ve got the website owner to thank because of that. The entire explanations you have made, the easy website menu, the relationships your site give support to engender – it’s most astounding, and it’s really helping our son in addition to the family believe that the concept is fun, which is unbelievably essential. Thank you for the whole thing!

  13. Excellent beat ! I wish to apprentice while you amend your site, how can i subscribe for a blog site? The account helped me a acceptable deal. I had been a little bit acquainted of this your broadcast offered bright clear idea

  14. I like what you guys are up also. Such smart work and reporting! Carry on the excellent works guys I’ve incorporated you guys to my blogroll. I think it’ll improve the value of my website :).

  15. I am now not positive where you are getting your info, however good topic. I must spend some time learning more or understanding more. Thanks for excellent information I used to be searching for this information for my mission.

  16. Great beat ! I would like to apprentice while you amend your site, how could i subscribe for a blog web site? The account helped me a acceptable deal. I had been tiny bit acquainted of this your broadcast offered bright clear concept

  17. You actually make it seem really easy along with your presentation however I to find this matter to be actually one thing that I believe I might by no means understand. It sort of feels too complex and extremely broad for me. I’m taking a look ahead on your subsequent submit, I will try to get the hold of it!

  18. Excellent read, I just passed this onto a colleague who was doing a little research on that. And he actually bought me lunch because I found it for him smile Therefore let me rephrase that: Thanks for lunch!

  19. Its like you read my mind! You seem to know so much about this, like you wrote the book in it or something. I think that you can do with some pics to drive the message home a bit, but other than that, this is magnificent blog. An excellent read. I will definitely be back.

  20. big dildo

    […]we prefer to honor quite a few other internet websites around the web, even when they aren’t linked to us, by linking to them. Below are some webpages really worth checking out[…]

  21. Excellent post. I was checking continuously this blog and I am impressed! Extremely helpful info specially the last part 🙂 I care for such info a lot. I was looking for this particular information for a long time. Thank you and best of luck.

  22. I would like to thnkx for the efforts you’ve put in writing this blog. I’m hoping the same high-grade blog post from you in the upcoming also. Actually your creative writing skills has inspired me to get my own website now. Really the blogging is spreading its wings quickly. Your write up is a great example of it.

  23. Fantastic beat ! I would like to apprentice while you amend your site, how could i subscribe for a blog website? The account aided me a acceptable deal. I had been tiny bit acquainted of this your broadcast offered bright clear idea

  24. I think this is one of the most vital information for me. And i am glad reading your article. But wanna remark on few general things, The website style is great, the articles is really nice : D. Good job, cheers

  25. I precisely had to appreciate you once more. I’m not certain what I would have used without those suggestions provided by you concerning this field. It had been a real intimidating matter in my circumstances, however , observing a new expert way you solved the issue took me to weep over joy. I’m just happier for your guidance and in addition pray you recognize what a great job you’re doing educating the others via a site. Probably you’ve never got to know any of us.

  26. I must show some thanks to this writer for bailing me out of this type of trouble. Just after checking through the world-wide-web and coming across principles that were not helpful, I was thinking my life was done. Being alive without the strategies to the issues you have sorted out by way of your entire guideline is a serious case, and the kind that might have in a wrong way affected my entire career if I had not come across the website. Your good skills and kindness in maneuvering all things was useful. I don’t know what I would have done if I had not come upon such a solution like this. I can at this time look ahead to my future. Thanks for your time very much for the high quality and results-oriented help. I won’t hesitate to propose your blog to anyone who will need counselling on this subject.

  27. sarkari naukri

    […]we prefer to honor a lot of other net websites around the net, even when they aren’t linked to us, by linking to them. Underneath are some webpages really worth checking out[…]

  28. Google

    Wonderful story, reckoned we could combine a few unrelated data, nevertheless genuinely worth taking a look, whoa did one discover about Mid East has got extra problerms also.

  29. Hip hop funny

    […]very couple of internet websites that take place to be in depth beneath, from our point of view are undoubtedly effectively really worth checking out[…]

  30. juicy chat

    […]although internet sites we backlink to beneath are considerably not associated to ours, we feel they may be really really worth a go via, so possess a look[…]

  31. girl chat

    […]Wonderful story, reckoned we could combine some unrelated data, nevertheless actually really worth taking a look, whoa did one study about Mid East has got extra problerms as well […]

  32. beeg

    […]we like to honor quite a few other world-wide-web websites on the web, even though they aren’t linked to us, by linking to them. Underneath are some webpages worth checking out[…]

  33. I amI’m really lovingenjoying the theme/design of your siteweblogweb sitewebsiteblog. Do you ever run into any web browserinternet browserbrowser compatibility problemsissues? A number ofhandful ofcouple ofsmall number offew of my blog audiencevisitorsreaders have complained about my blogwebsitesite not operatingworking correctly in Explorer but looks great in SafariChromeOperaFirefox. Do you have any solutionsideasadvicetipssuggestionsrecommendations to help fix this issueproblem?

  34. I lovereally like your blog.. very nice colors & theme. Did you createdesignmake this website yourself or did you hire someone to do it for you? Plz replyanswer backrespond as I’m looking to createdesignconstruct my own blog and would like to knowfind out where u got this from. thanksthanks a lotkudosappreciate itcheersthank youmany thanks

LEAVE A REPLY

Please enter your comment!
Please enter your name here