Unit of SMCP's majority shareholder fails to redeem bonds

PARIS, Sept 23 (Reuters) – French fashion company SMCP , whose brands include Sandro and Maje, said on Thursday that European TopSoho – a unit of its majority shareholder – had failed to redeem 250 million euros ($293 million) of bonds exchangeable into SMCP shares.

“European TopSoho has until September 30 (inclusive) to remedy this default”, said SMCP in a statement.

“To SMCP’s knowledge, the shares underlying the bonds and pledged in this context represent 37% of the share capital of SMCP,” it added.

SMCP said the situation did not call into question its own funding and operations, and SMCP shares were up 5.6% by 0855 GMT.

Shandong Ruyi holds 53% of the share capital of SMCP, and European TopSoho is one of its units. Neither company immediately responded to emailed requests for comment.

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