Steinhoff likely to pay interest on debt for the near term and refinance SA borrowings
Lenders are also reported to have backed a move to prop up the company’s troubled European operations with liquidity from healthier South African subsidiaries
Steinhoff International Holdings expects to be able to pay interest on debt for the near term and plans to refinance all borrowings within SA as the global retailer battles to survive an accounting scandal. The new financing agreements will enable the owner of Mattress Firm in the US and Conforama in France to free up funds for the rest of the company, Steinhoff said in a statement on Thursday. Based on projected cash requirements in Europe, the retailer is seeking about €200m ($245m) from South African lenders, it said. The move is an early sign that the Frankfurt- and Johannesburg-listed company is making progress with crunch talks with lenders on how to continue operations after it reported accounting irregularities last month. The stock gained as much as 8.2%, reducing the drop since the scandal broke to 85%. CEO Markus Jooste and chairperson Christo Wiese, who is also the biggest shareholder, have both resigned. Steinhoff said it would give an update on trading for the three mo...
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