Boutiques San Francisco receives support from holders of 8% convertibles

New York, July 8 - Les Boutiques San Francisco Incorporees said holders of its 8% convertible unsecured subordinated debentures due 2008 approved its amended plan of compromise and arrangement at a meeting Thursday.

The Longueuil, Que. company said that under the modified order holders of the C$14.992 million 8% debentures will receive new unsecured debentures with a par value of C$6.15 million.

The new securities will pay interest at 12% and will mature after four years. They will be callable after three years. Holders can convert them at any time into class B subordinate voting shares at a price of C$0.50 per share.

Boutiques San Francisco said that on July 5, 93.4% of its chirographic creditors, 81.9% of the creditors of Les Ailes de la Mode Incorporees and 100% of the creditors of Les Editions San Francisco Incorporees approved the amended plan.

Creditors of the company other than Ivanhoe Cambridge will receive an amount representing 37% of their ordinary claims and creditors of Les Ailes an amount representing 10% of their ordinary claims. For creditors of Les Editions, it is expected that all debt repayments received by Les Editions will be transferred to the Controller for distribution to creditors up to the amount of their claim.

Boutiques San Francisco will now ask for the Quebec Superior Court to ratify the amended transaction and arrangement plan. The company also needs to close a private placement with investors, expected by the end of July.

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