Steinhoff gets added help from creditors

STEINHOFF International Holdings has said that it had received additional backing from its creditors for a standstill agreement on its debt from more than 75 percent of its convertible bondholders for its business in Austria.

The group said it had received three support letters from holders of the three convertible bonds issued out of its Steinhoff Finance Holding (Holding).

These include holders of 83.27 percent in aggregate nominal amount of the series of convertible bonds due in 2021, holders of 93.36 percent in aggregate nominal amount of the series of convertible bonds due in 2022, and holders of 75.54 percent in aggregate nominal amount of the series of convertible bonds due in 2023. “The group remains in constructive discussions with its creditors to agree and implement a restructuring plan,” it said.

The bonds are worth a combined €2.7 billion (R41.71bn).

It is the second time within a week that Steinhoff has received support from its lenders. Last week, it reported that it had received support from creditors representing 61 percent of its debt for a standstill agreement for its two operations in Austria.

The group has been struggling to raise liquidity since it admitted to accounting irregularities which led to a decline of more than 90 percent in its share price in December. It reported that it had €10.4bn debt as at the end of March.