Steinhoff said to win some bank support for credit extension

Johannesburg/London - Steinhoff International Holdings NV has started to gain support from key lenders as it seeks extra time to repay more than €1bn ($1.2bn) owed on a revolving credit facility, according to people familiar with the matter.

At least three of the embattled retailer’s biggest lenders have indicated to the company that they would support rolling over the debt, which is due in about three weeks, said the sources, who asked not to be identified because the matter is private.

The repayment extension, which needs support from a majority of lenders, will be discussed at a December 19 meeting, the sources said.

Steinhoff rattled creditors and investors last week by announcing accounting irregularities and the departure of its chief executive officer. The revelations have caused an about 75% slump in shares of the company, which owns Mattress Firm in the US, Poundland in the UK and the Pep clothing chain in Africa.

The retailer didn’t reply to a request for comment on the €2.9bn revolving credit facility.

Most banks providing the facility, which matures in 2021, are yet to make a decision about the rollover request, the people said. 

The top lenders in the facility include Bank of America, BNP Paribas, China Construction Bank, Citigroup, Commerzbank, Credit Agricole, HSBC Holdings, Mizuho Financial Group, Natixis  and Royal Bank of Scotland, according to data compiled by Bloomberg.

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