Steinhoff has given its creditors less than a week to agree to a three-year debt standstill that would give the Steinhoff board and management room to correct and restructure the business without the constant threat of liquidation proceedings. The Steinhoff share price surged 21% to R2.60, its highest intraday level since April, on Wednesday’s news that management had launched a consent process for a lock-up or standstill agreement with its creditors. The share eased from its highs to close at R2.26. Steinhoff implied that if sufficient creditor support is not obtained by July 16, its key European operations could be faced with liquidation proceedings. Steinhoff’s South African operations are not affected by the plan, which focuses on the creditors of Steinhoff Finance Holdings GMBH (Finance Holding) and Steinhoff Europe AG (SEAG). Finance Holdings and SEAG are both Austrian-based. No South African assets have been listed as part of the security for any of the debt involved in the p...
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