The insolvency administrator of ESCADA AG signed a sale and transfer agreement with one of the Mittal Family Trusts (вЂњthe TrustвЂќ), sold to Megha Mittal.
With the execution of the agreement all key assets of ESCADA AG's operative business as well as shares in ESCADA AG's subsidiaries will be transferred to the Trust. Excluded thereof are any subsidiaries, which serve as guarantor for the ESCADA bond. The preliminary creditors' committee has approved the transaction.
The transaction provides for a transfer of ESCADA AG's business operations, including employees as well as worldwide brand rights, production facilities and the sales and distribution structure to the Trust. The Board of Management and the new investor have agreed to cooperate on the basis of the business strategy launched in mid-2008 securing continuity of the operative business. The transaction is subject to customary antitrust approvals.