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.