Bondholders who own the debt of insolvent German retailer Karstadt's properties have called another special meeting in London, scheduled Sept. 2, to discuss some of the terms of billionaire investor Nicholas Berggruen's takeover offer, according to a notice from the group seen by Dow Jones Newswires Wednesday.

The bondholders group, which represents senior class A noteholders in the Fleet Street Finance Two PLC securitization, has called the meeting ahead of an Essen court deadline to reach an agreement with Berggruen over his takeover plan by midnight Sept. 2.

Included in the bondholders' notice is an agreement on behalf of the creditors to approve a takeover plan with another bidder in the event that the Karstadt deal with Berggruen falls through, assuming that such deal terms looked acceptable to bondholders.

The clause in the bondholders' notice is an effort by creditors to expedite the sales process in the event that a deal with Berggruen falls through and a bid from another interested party is considered in its place.

Italian investor Maurizio Borletti appeared with a last-minute bid for Karstadt last week. Karstadt's insolvency administrator, Klaus Hubert Goerg, has already said it is too late to consider alternative bids for Karstadt, including the one made by Borletti.

Bondholders failed to reach an agreement with Berggruen at a previous meeting in early July, resulting in an initial extension to the talks deadline. Failure to reach a final agreement would put Karstadt at serious risk of liquidation, threatening the closure of more than 100 stores around Germany and the loss of around 25,000 jobs.

Goerg granted another three week extension to the negotiation process Tuesday.

-By William Launder, Dow Jones Newswires; +49 69 29725 500; djnews.frankfurt@dowjones.com