Steinhoff restructuring begins
Despite warning signs last week that the Steinhoff International proposed lock-up agreement was struggling to attract investor support, the homewares retailing group announced the agreement has become effective as of July 20th.
The parties to the lock-up agreement will now have to implement the restructuring within three months, the terms of which will remain in place for three years, subject to a maturity long stop date of 31 December 2021.
“The company… has received significant support from its external creditor groups through the accession process to the LUA,” an investor release notes.
The company has signalled that creditors who are not yet in support of the agreement may still receive the Lock-Up Fee, in spite of the agreement having already become effective, should they choose to support the agreement now; likely an effort to coax more creditors on board.
The company has been under investigation for fraud for some time, with geographical subsidiaries considering name changes to distance themselves from the potentially poisonous Steinhoff name.
Steinhoff Asia Pacific recently considered a rebranding itself ‘Greenlit’, while South-African based Steinhoff Africa Retail last week proposed a name change to “Pepkor Holdings Limited”; finding shareholder support, excluding abstentions, of approximately 96 per cent.
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