euro adhoc: GARANT SCHUH + MODE AG / GARANT files for insolvency (E)

Disclosure announcement transmitted by euro adhoc. The issuer is responsible for the content of this announcement.

The board of directors of GARANT SCHUH + MODE AG has resolved today to file a petition for commencement of insolvency proceedings on the grounds of illiquidity with the competent Local Court of Düsseldorf on September 7, 2004, in order to avoid further damage to the Company. The negotiations between the Company and its financing banks with the objective to bridge a liquidity shortage and to ensure sufficient long-term financing did unexpectedly not lead to final and satisfactory results so far since out of eighteen financing banks the Dutch Rabobank International was not prepared to maintain its loans and credits at the terms and conditions agreed between the financing banks. An agreement of all eighteen financing banks is necessary in order to bridge the liquidity shortage. The Company plans to continue its discussions with the financing banks with high intensity. If the financing of GARANT SCHUH + MODE AG can be ensured shortly the board of directors will withdraw its petition for commencement of insolvency proceedings. Otherwise the Company plans to implement necessary restructuring and financing measures to secure continuation of the business in the course of the insolvency proceedings.

Further inquiry note:
Jenny Bleilefens
Investor Relations
Telefon: +49(0)211-3386-311
Tel: +49(0)211-3386-0
FAX: +49(0)211 3386 297

Emittent: GARANT SCHUH + MODE AG Elisabethstrasse 70 DE-40217 Düsseldorf Tel: +49(0)211-3386-0 FAX: +49(0)211 3386 297 Email: WWW: ISIN: DE0005853030 WKN: 585303 Indizes: CDAX, Classic All Share, Prime Standard Börsen: official dealing Börse Düsseldorf, Frankfurter

end of announcement euro adhoc

Wertpapierbörse; free trade Berliner Wertpapierbörse, Bayerische Börse, Hamburger Wertpapierbörse, Bremer Wertpapierbörse (BWB), Baden-Württembergische Wertpapierbörse
Branche: Consumer Goods
Sprache: Englisch