Groupe Les Ailes de la Mode to ask holders to exchange debentures for stock

By Caroline Salls

Pittsburgh, Nov. 10 - Groupe Les Ailes de la Mode Inc. obtained approval from the Superior Court of the Province of Quebec to ask the holders of its 12% unsecured debentures due 2008 to exchange their holdings for the company's shares and said it will change its name to Groupe Bikini Village inc., according to a company news release.

There are C$15.6 million of the debentures outstanding.

The company will not make any further payment of principal or interest on the debentures until a recapitalization plan takes effect, the release said.

The exchange ratio will be the lower of the volume-weighted average five-day share price before Thursday or the five-day average before a court order approving the exchange.

"In the past few months, we have taken a number of steps to improve our financial position," interim chief executive officer and chief financial officer Leslie E. Glazerman said in the release.

"We are at a stage where we can capitalize on the strong momentum achieved in Bikini Village and Ocean Bikini Village. However, the monthly interest payment on our debentures is resulting in a liquidity shortfall, and our current capital structure limits our strategic options, preventing us from opportunistically growing our business."

Based in Boucherville, Quebec, Group Les Ailes is a men's and women's clothing retailer.

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