Creditor groups extend support to Steinhoff subsidiaries

Steinhoff said on Friday that two of its subsidiaries had received three-week debt repayment extensions from creditor groups. 

Earlier in the week the embattled retailer, whose share price has fallen by over 95% since December 2017, reached out to creditor groups to ask for extended support for Steinhoff Europe AG (SEAG) and Steinhoff Finance Holding GmbH.

These two subsidiaries of the Dutch-domiciled retail giant act as the principal finance companies for the group’s European business.

In a stock exchange announcement on Friday, Steinhoff said it had received support for a three-week debt repayment extension 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 Holding GmbH
  • holders of 94% in aggregate nominal amount of the series of convertible bonds due 2022 issued by Holding; and
  • holders of 79% in aggregate nominal amount of the series of convertible bonds due 2023 issued by Holding.

The support period has been extended up to and including July 20, 2018.

The retailer had previously said that, if it did not receive confirmation of credit lifelines by Friday, the boards of the two companies would have to "assess their options  - including local reorganisation procedures - and obligations under the applicable Austrian law".

At 15:05, Steinhoff shares were trading on the JSE at R1.28, up 5.79%. 

The global retailer, which is under investigation by the Hawks, is set to publish its unaudited group results for the first half of 2018 later on Friday.

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