JOHANNESBURG -  Steinhoff, which is still grappling with a liquidity crunch after accounting irregularies caused investors to flee, said on Friday it was in discussions with potential funders to provide liquidity facilities, including existing creditors and investors.

The company said it expected to be in a position to pay cash interest on all its existing financial debt over the near term.

Earlier this month, Steinhoff said it required significant near-term liquidity in some of its business units although it had achieved some degree of stability after a sustained sell-off of its shares in December over the accounting scandal, which saw group CEO Markus Jooste resign.

"To date, additional external liquidity has not been obtained in the time available given the complexity of the group structure and the terms of the existing financings," it said on Friday.

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The company expected to put further stabilisation measures in place, including a refinancing and redemption of some or all of its financial indebtedness within South Africa, which would release additional funds for additional liquidity.

 It would also ask some of its financial creditors to provide limited waivers under some of its existing European financing arrangements.

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- BUSINESS REPORT ONLINE