Steinhoff said on Thursday that around 90% of creditors for several subsidiaries supported an agreement to hold off debt claims for three years, an important step in restructuring the scandal-hit South African retailer.
Steinhoff said investors holding 89% of the debt of Steinhoff Europe AG (SEAG) and 89% of the debt of Stripes US Holding Incorporated had given initial consent to a so-called 'lock-up agreement', which is still being finalised.
Between 92% and 99% of investors holding bonds issued by Steinhoff Finance Holding GmbH also give their support to the lock-up, the company said in a statement.
Locking In Creditors
Johannesburg-listed shares in Steinhoff were up almost 8% after the announcement.
Steinhoff needs at least 75% of creditors of its subsidiaries to sign up to the lock-up agreement by a deadline on Friday. An 'early bird fee' deadline for creditors to sign up to the agreement expired on Wednesday.
Once enough creditors are locked in, Steinhoff will begin restructuring its debt within three months.
News by Reuters, edited by ESM. Click subscribe to sign up to ESM: European Supermarket Magazine.
