European Lingerie Group AB (“ELG” or “Company” and together with its subsidiaries from time to time, the “Group”) has previously announced that on 29 July 2020, ELG and its principal shareholders reached a standstill agreement and signed a standstill letter (“Standstill Letter”) with certain holders of the Bonds, today representing over 60 per cent of the Total Nominal Amount of the Bonds (the “Bondholder Committee“), regarding ELG’s defaults under the Terms and Conditions and also announced a cooperation between ELG and the Bondholder Committee to explore and execute a potential restructuring of the Group and the Bonds, with regard to the terms and conditions (the “Terms and Conditions“) for ELG’s up to EUR 60,000,000 senior secured floating rate bonds due 2021 with ISIN SE0010831792 (the “Bonds“). Capitalised terms used but not defined herein shall have the meanings assigned to them in the Terms and Conditions. More information regarding the terms of the Standstill Letter can be found in ELG’s press release from 30 July 2020. On 16 October 2020 and 21 January 2021, respectively, the Company informed that the standstill period is prolonged due to the ongoing restructuring process.

ELG is pleased to announce that the process for potential investment into the Group as well as bond restructuring is progressing well. In addition, due to considerable progress in the investment process, ELG and its principal shareholders have reached an agreement with the Bondholder Committee on a further extension of the standstill period to accommodate the time frame required to complete the investment process with any one of the potential investors.

ELG hereby informs that the standstill period is further extended to accommodate the investment process deadlines with a requirement to sign a binding investment agreement by 28 February 2021 and full closing of transaction by the end of March 2021 at the latest.

The amendments, extensions and waivers above are subject to the Group’s and principal shareholders’ continued cooperation with the Bondholder Committee for finalization of the investment process. The standstill period may be further extended or, if certain conditions of the standstill agreement are not met, lapse prior to the end of the agreed period.

Furthermore, because of the ongoing restructuring process, ELG hereby informs that the Bonds will not be repaid on 22 February 2021 which is the original maturity date stipulated in the Terms and Conditions. The maturity date of the bonds has been extended in the system kept by the central securities depository and registrar in respect of the Bonds, Euroclear Sweden AB, to 31 March 2021 to correspond with the period to close the transaction under the Standstill Letter.

The Company intends to have the listing of the Bonds on Nasdaq Stockholm upheld and/or restored after the original maturity date to correspond with the period to close the transaction under the Standstill Letter.

The non-repayment of the bonds on the original maturity date constitutes an Event of Default and any potential de-listing of the Bonds from Nasdaq Stockholm could result in an Event of Default under the Terms and Conditions. The Bondholder Committee has undertaken, during the standstill period, not to instruct the Agent to accelerate the Bonds due to any such Event of Defaults.

This information is information that European Lingerie Group AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out below, at 16:30 CET on 19 February 2021.

For more information, please contact:

Baiba Birzniece
Head of Strategy, M&A and IR
European Lingerie Group AB
+371 2839 1256