Ashurst advises Vivarte in connection with its debt and share capital restructuring. On 1 August, the Paris Commercial Court approved the unanimous agreement reached by the 116 creditors of the clothing and shoes retail group for the conversion of €2 billion debt into equity and quasi-equity instruments, the debt value being reduced from €2.8 billion to €800 million.

The transaction also includes the injection of €500 million of new money which will allow the group, managed by Marc Lelandais, to strengthen its financial structure and to pursue its investment program.

On completion of the restructuring, the group's current lenders will become shareholders, with Charterhouse, the majority shareholder since 2007, as well as minority shareholders Chequers and Sagard, exiting the transaction.

Vivarte Group comprises 16 clothing and shoe retailers including André, Caroll, Chevignon, Kookaï, la Halle, Minelli, Naf Naf and San Marina. The group has a strong French and international presence with 4800 sales outlets covering three retail sectors: fashion, shoes and leather goods.

This transaction constitutes Europe's largest LBO restructuring this year and the largest conversion of debt to capital ever completed in France.

The transaction was led by partners Guy Benda, Jean-Pierre Farges and Laurent Mabilat. The team also consisted of Marine Guillodo, associate, on the restructuring aspects, partners Stéphanie Corbière and Julien Bacus, associates Marie Roche and Sylvain Cantomerle, on the banking and derivatives aspects and associate Julien Rebibo on the corporate aspects.