Steinhoff share price rockets after support letters

File image: IOL.

File image: IOL.

Published Jun 7, 2018

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JOHANNESBURG - Steinhoff, which has been embroiled in an accounting scandal, said on Wednesday it had received creditor support letters for two companies it used to finance its overseas business.

Steinhoff shares rocketed by more than 50% on Thursday. At 11:00 the shares were trading at R1.37. 

Steinhoff said the support letters for Steinhoff Europe AG and Steinhoff Finance Holding GmbH took effect on Wednesday and underlined creditors’ support for a restructuring plan.

Creditors agreed to interim support measures until June 30, as well as agreeing to subordinate around 154 million euros ($181 million) of their contractual rights against the two firms, Steinhoff said in a statement.

-REUTERS 

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