Steinhoff requests support from creditors

Steinhoff-Horslepy-Park-renderSouth African-based Steinhoff International is extending the window for creditors to approve and sign up to a “consensual restructuring plan and a lock-up agreement.”

The company announced today it would extend the window for support by an extra month, from 30 June to 20 July 2018, having initially put forward the proposed plan earlier in the month.

In addition, Steinhoff noted that interest owed to creditors would not be paid until the lock-up agreement becomes effective, expected to be by 20 July assuming the amended support measures goes through.

The request comes just one day after the company announced it had sold two of its furniture brands and associated property, Kika/Leiner, for approximately $770 million.

Steinhoff CEO Danie van der Merwe explained in a release that liquidity constraints for the Kika/Leiner businesses “would have placed significant further cash demands on the wider Steinhoff Group given the businesses are both loss-making and require significant investment to implement the turnaround.”

The call of extended support comes at a difficult time, with the company coming under investigation for possible fraud, and subsidiaries floating the idea of a name change to distance themselves from the troubled parent company.

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