Steinhoff falls despite new restructuring deadline
The group said the extension was approved by the requisite majorities of Steinhoff Europe AG (SEAG) and Steinhoff Finance Holding GmbH (SFHG) creditors last Thursday.
Steinhoff has been racing against time to implement its financial restructuring plans for its subsidiaries after it entered into a company voluntary arrangement (CVA) in December last year.
The latest request for extension follows the two earlier ones launched by the group in December and in March. The last one was launched on May 17.
“Following extensive discussions between the company, advisers to the SEAG creditors group and the SFHG creditors group, the company launched CVA consent request No 3. CVA consent request No 3 was approved by the requisite majorities of SEAG and SFHG creditors on May 30, 2019,” Steinhoff said on Friday.
Despite the thumbs-up from the creditors, the group's share price continued to trade in a negative territory on Friday as it closed weaker at R1.34 a share.
The group said it was considered necessary despite its best efforts, and given the mechanical steps and prescribed notice periods required, not all of the relevant conditions precedent to, or the steps required in respect of the implementation of the SEAG CVA and SFHG CVA would have been satisfied prior to the previous CVA long-stop date of May 31.
“As a consequence of amending the CVA long-stop date, the long-stop date pursuant to the lock-up agreement has also been amended to be the same as the amended CVA long-stop date of June 30,” the group said.
However, the group said it remains committed in completing the financial restructuring as quickly as possible.
It added that it continued to actively monitor cash flows and manage other liabilities, including contingent claims, tax and bilateral facilities as well as funding needs that might arise at the subsidiary level.
“Recently, SFHG instructed the sale of listed securities owned by it and has realised proceeds of approximately 37million (R600.8m), which will be used to support the liquidity position of the SFHG Group,” Steinhoff said.