Steinhoff Gains Creditor Support Ahead Of Restructure
Embattled South African-owned retail conglomerate, Steinhoff International, has reportedly gained 100% third-party creditor support for its lock-up agreement (LUA) – taking effect July 20th.
In Australia, Steinhoff owns retailers such as Freedom Furniture, Fantastic Furniture, Best & Less, Snooze and POCO.
Steinhoff Asia Pacific is lead by former The Good Guys CEO Michael Ford, and as per afr, is considering a name change away from its parent company.
Early this year, Steinhoff International made headlines for accounting irregularities, prompting investigation from European authorities – news which caused shares to dive ~90%.
Reports claim the retail group has faced difficulties gaining LUA creditor support, however, the agreement has reportedly now taken full effect.
Published in an investors update, Steinhoff confirms “100 per cent in value of the third-party creditors under Hemisphere’s EUR750m revolving credit facility” has entered into the LUA.
“The company and the hemisphere lenders are continuing discussions on implementation of the restructuring of the financial indebtedness of hemisphere”
“[they] are now seeking to execute the material documents required to implement the hemisphere restructuring by 17 August 2018.”
Taking effect July 20th, the conglomerate has three months to implement restructuring.
The restructure follows revelations of mounting debt, with millions of dollars in deficit reportedly discovered within the group’s books.