Steinhoff legal battle suspended

Steinhoff International Holdings has been thrown a lifeline, with investment group VEB/European Investors agreeing to suspend collective ongoing legal action until 3 April 2019.

VEB/European Investors sued Steinhoff in the Dutch Court for incorrect and misleading financial statements, prospectuses and press releases, which led to financial losses by Steinhoff shareholders.

The suspension allows the struggling furniture retailer to focus on its ongoing restructuring and make further progress in its internal investigations and financial statements.

“Steinhoff is engaged in a complex reorganisation as it restructures its financial liabilities and finalises investigations and financial statements,” Steinhoff acting chief executive Danie van der Merwe said in a statement to investors.

“This agreement allows us time to focus on completing these tasks in the interest of all stakeholders.”

Once the suspension is lifted, the companies will be free to continue legal proceedings, or to negotiate a settlement.

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