Steinhoff asks for fifth extension of its financial restructuring in EU
DURBAN – Embattled retailer Steinhoff International has asked for another consent from its creditors to extend the date for the completion of its financial restructuring for its European businesses to August 19. Steinhoff's deadline was set for last Friday.
It is the fifth time that Steinhoff has asked for an extension to implement its financial restructuring from its creditors, after starting the restructuring in December.
The company voluntary agreement (CVA) consent request number 4 was approved by the requisite majorities of Steinhoff Europe AG (SEAG) and Steinhoff Finance Holding GmbH (SFHG) creditors on June 28.
The group’s share price traded 4.13 percent higher on Thursday after the retailer launched consent number 5. However, it closed at R1.26.
On Thursday, the group said that despite significant progress having been made in the implementation of the restructuring, including the resolution of almost all matters required prior to commencing the restructuring steps, a small number of matters outside of the control of SEAG and SFHG have not been concluded.
“The company has launched CVA consent request number 5 to extend the date for completion of the group restructuring to Monday, August 19, 2019,” the group said.
Steinhoff expected the CVA creditors and SFHG creditors to provide their consent prior to 4.30pm last Friday.
“The additional extension is required in order to allow sufficient time to put in place the final steps of the implementation of the restructuring,” Steinhoff said.
It added that the remaining matters are expected to be resolved shortly and the group continues to work to implement the restructuring as soon as possible, including, if possible, prior to the current CVA long-stop date of August 9. “In the event it is not possible to complete all restructuring steps on or prior to August 9, CVA consent request number 5 will provide the short additional time required,” the group said.
The retailer has been battling for liquidity since it admitted to accounting irregularities in December 2017 which led to a 90 percent decline in its share price. In the process it lost more than R200 billion in market capitalisation.
The group said the proposed extension will not affect the entitlements of any creditors pursuant to the CVAs.