Creditors do deal with Steinhoff

TO AVOID INSOLVENCY PROCEEDINGS Original deadline of June 30 has been extended to and including July 20.

Key creditors of two of Steinhoff’s subsidiaries, Austrian-based Steinhoff Europe AG (SEAG) and Steinhoff Finance Holdings, have agreed to hold off on calling in debts for another three weeks.

Lenders had originally agreed to a deadline of June 30, but Steinhoff requested more time to produce a long-term solution. The support period under which the creditors have agreed not to enforce their rights will now run up to and including July 20.

Steinhoff noted that it had received support to extend the period from:

creditors representing 85% of the external debt of SEAG;

holders of 85% in aggregate nominal amount of the series of convertible bonds due 2021 issued by Steinhoff Finance Holdings;

holders of 94% in aggregate nominal amount of the series of convertible bonds due 2022 issued by Steinhoff Finance Holdings; and

holders of 79% in aggregate nominal amount of the series of convertible bonds due 2023 issued by Steinhoff Finance Holdings.

The company had indicated earlier in the week that as long as a majority of creditors supported the extension, it would be implemented.

Steinhoff also announced that it has reached agreement with representatives of third party creditors on the “key commercial terms” for a restructuring plan for the business. The restructuring plan aims to “ensure fair treatment” for all creditors.

The group hopes to finalise a lock-up agreement, which will impose a debt standstill until the restructuring can be implemented.

Restructuring plan for the business aims to ‘ensure fair treatment’ for all creditors. Steinhoff announcement