Edcon Gets Waivers From Lenders Ahead of Recapitalization

Edcon Holdings Ltd. said lenders extended waivers to give the debt-laden South African retailer time to implement a recapitalization plan that was approved by its board, Bloomberg News reported. “The restructuring and recapitalization of Edcon has passed its next hurdle,” Chief Executive Officer Grant Pattison said in an emailed statement on Friday. “This will allow sufficient time for the number of necessary due diligence and governance processes to be completed,” adding that more details will be announced in “due course.” Pattison, who took the helm of the Johannesburg-based owner of clothing retailers Edgars and Jet and stationery shops CNA in February, announced plans earlier this year to close some chains and to cut floor space by 17 percent over five years to save costs. The 89-year-old company has long struggled to stay afloat amid weak consumer spending and economic growth in South Africa, and had to be taken over by banks and bondholders in 2016 to avoid failing. Read more