UPDATE 1-Loehmann’s extends debt exchange deadline

* Company nears exchange threshold

* New deadline set for 5 p.m. on Thursday

WILMINGTON, Del., Oct 28 (BestGrowthStock) – Discount department
store chain Loehmann’s [ARCABL.UL] said on Thursday it extended
its debt exchange offer by a day as it nears a key threshold
that would give it needed financial breathing room.

Loehmann’s Capital Corp is seeking to exchange notes
maturing in 2011 for new notes due in 2014.

The owner of 60 stores said that by extending the deadline
from Wednesday to 5 p.m. EDT Thursday it would have at least
92.4 percent of aggregate outstanding principal amount of old
notes tendered in the exchange.

The Melville, New York-based company needs holders to
tender 97 percent of the aggregate principal amount of old
notes to complete the exchange.

Loehmann’s, owned by Dubai investment group Istithmar, a
unit of Dubai World [DBWLD.UL] , said that extending the
exchange offer would allow holders of 34.9 percent of the old
notes to tender their holding.

Loehmann’s said that it may terminate or change the terms
of the exchange offer, subject to applicable law.
(Reporting by Tom Hals, editing by Gerald E. McCormick)

UPDATE 1-Loehmann’s extends debt exchange deadline