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Notice of event of default under the senior secured bonds issued by European Lingerie Group AB (publ)

6 December 2019

To holders of the up to EUR 60,000,000 Senior Secured Floating Rate Bonds due 2021 with ISIN SE0010831792 (the “Bonds”) issued by European Lingerie Group AB (publ) (the “Issuer”) on 22 February 2018.

The Agent has been informed that the Issuer has failed to fulfil its obligations under paragraph (a) of Clause 12.1 (Maintenance Test) (the “Net Interest Bearing Debt to EBITDA”) for the third quarter 2019. The Issuer has not provided evidence that an Equity Cure in accordance with Clause 12.1.3 (Equity Cure) has or will be performed within the stipulated thirty (30) Business Days from the delivery of the Compliance Certificate evidencing the breach.

In our capacity as Agent, we hereby notify you, in accordance with Clause 14.2 of the Terms and Conditions, that an Event of Default under Clause 14 (Events of Default and Acceleration of the Bonds) of the Terms and Conditions has occurred and is continuing.

The Issuer has informed the Agent that they shortly will initiate a Written Procedure under the Terms and Conditions to waive the breach described above and to amend the Terms and Conditions, to amongst other, increase the allowed ration under the Maintenance Test to ensure compliance going forward. According to the Issuer Bondholders representing more than 50% of the Adjusted Nominal Amount are to be in favour of such an amendment.

Considering that there are ongoing discussions between the Issuer and the majority of the Bondholders, the Agent has temporarily decided not to take any actions under the Terms and Conditions with regards to the Event of Default while awaiting the outcome of the discussions.

For further information, please contact the Agent:

Intertrust (Sweden) AB

Beatrice Gustafsson


Tel: +46 70 141 10 82

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