Photo: David Harrison

DURBAN - Steinhoff International property portfolio, Hemisphere International Properties, yesterday announced that 100 percent in value of the third-party creditors under Hemisphere’s €750 million (R10.50 billion) revolving credit facility have now entered into the Hemisphere lock-up agreement (LUA).

The news comes after Steinhoff received 91 percent support from its lenders for the restructuring of its debt in Hemisphere towards the end of last month.

Under the lock-up agreement, Steinhoff is seeking a three-year extension to payments due to lenders and bondholders.

The troubled retailer has been negotiating with its lenders since admission to the accounting irregularities in December which led to 95 percent decline in share price.

The deal struck with the lenders might just provide the company with a breathing space and solve some liquidity crisis as it restructures its balance sheet.

“Further to the July announcement, the company is pleased to announce that 100 percent in value of the third-party creditors under Hemisphere’s €750m revolving credit facility have now entered into the Hemisphere LUA,” the group said in a statement on Monday morning.

However, Steinhoff’s share price traded in the negative territory on Monday morning despite the announcement as it was down by 0.8 percent to R2.43 a share.

The group added that it is continuing with the discussion with Hemisphere lenders on implementation of the restructuring of the financial indebtedness of Hemisphere.

“The parties to the Hemisphere LUA are now seeking to execute the material documents required to implement the Hemisphere restructuring by August 17,” Steinhoff said.

-BUSINESS REPORT