In an attempt to try reach a deal with its largest bondholder, Deutsche Bank, the Kellwood’s board voted to give the bank until midnight tonight to accept a deal to defer the bond payment by swamping it with bonds that mature in 2014 with sweetened terms. Kellwood’s $140 million in bonds matured on Wednesday.
“The board is extending the expiration date of the exchange offer to allow Deutsche Bank two more days to reverse its current position and accept the deal they helped structure and told us all along that they supported,” Kellwood President and Chief Executive Michael Kramer said in a statement.
The company is making money and turning a profit. Kellwood, which owns Baby Phat and Phat Farm has about $800 million in annual sales. No one wants another bankruptcy. Renegotiate those bonds!