Garnero Group Discloses Amendment to Merger Terms with Grupo Colombo

Garnero Group Acquisition Company

and Q1 Comercial de Roupas S.A. revealed Wednesday that they reached an amendment to the definitive investment agreement related to their previously announced proposed merger. Garnero Group said that the amendment was prompted partly by Grupo Colombo's entry into its earlier disclosed financial restructuring. As indicated on June 10, Grupo Colombo's restructuring plan offered capital structure equalization apart from a balanced cash flow for operations going forward. The company stated that the restructuring plan was approved by about 64% of Grupo Colombo's unsecured creditors and, upon confirmation by the Brazilian courts, would be applicable to all of Grupo Colombo's unsecured creditors. Garnero also pointed out some key changes to the investment agreement that included the shareholders of GC committing to purchase, directly or through other entities acting at their direction, $10 million of GGAC shares in the public market. The company indicated that the date by which the transactions would be completed following the investment was extended to June 25 or July 22 if GGAC gets extension of the date by which it could complete an initial business combination. For its part, Grupo Colombo has committed to get, or to use its commercially reasonable best efforts to obtain, some necessary consents and approvals, including the court approval of the restructuring plan, certain necessary amendments to the restructuring plan and the consent of the debenture holders. The stock traded flat on Wednesday.