House of Fraser announces English and Scottish schemes are effective

By Caroline Salls

Pittsburgh, July 27 – House of Fraser and House of Fraser (Stores) Ltd.’s English and Scottish schemes of arrangement have been sanctioned by the courts, and the scheme effective date occurred Friday, according to a news release.

The schemes were sanctioned by the English court on July 25 and by the Scottish court on July 26.

House of Fraser said one of the purposes of the schemes was to allow up to £50 million of new financial debt to be incurred.

The company said it entered into a £10 million term loan facility under a new super senior basket and repaid a £10 million short term overdraft facility obtained from its banks in May.

According to the release, another purpose of the scheme was to facilitate the recapitalization of the group through a change of control expected to occur as a result of C.banner International Holdings Ltd.’s conditional agreement to acquire a 51% stake in House of Fraser Group Ltd.

However, the company said C.banner made an announcement in Hong Kong on July 26 that the delivery of a shareholder circular related to the transaction has been delayed. House of Fraser said it is considering the implications of this delay.

Under the schemes, all applicable maturity dates for House of Fraser’s senior facilities agreement and notes and all related guarantees have been extended to Oct. 30, 2020.

House of Fraser is a London-based department store company.

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