Superdry shareholders approve restructuring plan, opt for equity raise via placing

British retailer Superdry has had its rescue plan approved by shareholders days after creditors pushed forward on the proposal to restructure its UK business.

While all of the resolutions put forward in a general meeting held Friday have been approved, the directors opted to carry out the option for a placing, backing the company’s plan for an equity raise.

In making their decision, Superdry said that independent directors had taken into account liquidity requirements and the interests of creditors.

Board members also recognised that the 10 million pounds gross proceeds from a Placing, which remains subject to conditions, would provide “greater comfort” and ensure the company had “significant liquidity headroom to implement its turnaround plan” over the 6.9 million pound proceeds that would come from an Open Offer.

As such, the placing of allotted shares by the board will go forward. The proposal also included a possible delisting from the London Stock Exchange, which received a majority approval from 90 percent of the shareholders.

Plans wait for court sanctioning

Now, the restructuring plan must go to court to be sanctioned in, with a hearing to be held on June 17.

Superdry further anticipates that, if court approved, the last day of its listing on the stock exchange would be June 18, with the cancellation of the listing to follow on July 12. Ultimately, the allotment of new placing shares is anticipated to unfold on July 15.

In the filing, Peter Sjӧlander, Superdry chairman, said: “I am pleased that our shareholders have supported the proposed Equity Raise and would like to thank those shareholders who voted in favour of the proposals before them today.

“This is a crucial step towards delivering the restructuring of the business and ensuring that Superdry is in the best possible shape to complete its recovery and return to growth.”

The news comes shortly after creditors had approved part of the overarching Capital and Restructuring Measures plan earlier this week, which specifically addressed the company’s UK real estate, in which it hopes to carry out rent reductions and shift its retail cost base.

This, along with the proposed Equity Raise and Delisting, were inter-conditional, requiring Superdry to receive approval for all three in order to move forward.

In regards to the Equity Raise, the company is hoping to secure both an extension of maturity dates for loans made under agreements with two investors, and a placing of five pence per share.