Two bidders for cash-strapped retailer Theme International Holdings have bombarded its bank creditors with revised takeover proposals in a last-minute effort to push through their bids. Representatives of casual wear chain operator Giordano International and women's wear-maker High Fashion International yesterday lobbied about 14 bank creditors. However, rival suitor YGM Trading is believed to have stopped pursuing its bid. A Theme spokesman said yesterday that the banks, led by HSBC, had yet to agree on which proposal to accept and that they intended to make a decision in 'several days'. Theme is believed to be on the brink of collapse under the weight of $242.78 million in debts and is suffering from limited working capital. Sources said Theme needed about $45 million in fresh cash to stay afloat, not to mention the cost of preparing its upcoming spring collection. They said High Fashion and Giordano each had revised their offers. High Fashion director Raymond Wong Shing-loong said the company had done some 'fine-tuning' on its proposal but refused to disclose what had been changed. Giordano has offered to raise the level of debt repayment to bankers in the form of new Theme shares, according to sources. The sources said the most tempting feature of High Fashion's offer was an immediate cash injection into Theme as soon as bankers adopted the proposal. To make its offer more competitive, Mr Wong said High Fashion would contemplate relinquishing its rights to conduct due diligence on Theme's accounts. This could be a key lure for Theme and its creditors as the due diligence process could take months and hence delay any cash injection. A satisfactory due diligence was described as 'a must' in Giordano's offer, but it has softened its stance by vowing to shorten the process to one week from one or two months, the sources said. They said Giordano officials, including director Terry Ng Sze-yuen, and Theme representatives including non-executive director Gerald Dobby, had bombarded bank creditors with calls. Mr Dobby, a retired HSBC executive, and Theme chairman Kenneth Lai Ngan-long are strong backers of High Fashion's proposal. The sources said Mr Lai favoured High Fashion largely because under its proposal, he would be able to continue as Theme's chairman. TAKEOVERS
