ACCOUNTING SCANDAL
Steinhoff rises after notice it averted short-term liquidity squeeze
Steinhoff told its creditors in Europe on Friday that the company’s immediate operational liquidity requirements had been "largely addressed". Its share price rallied 1.5% to close at R7.55 after it posted the presentation on its website. Steinhoff had negotiated a "cash release" from SA whereby the group had reached an agreement with its South African lenders to shift funding from its African units to Europe. Its African subsidiaries would repay €200m in intercompany loans due to non-South African entities, partly by using the proceeds of the sale of PSG shares. This comes after Steinhoff sold R7.1bn in shares in PSG Group and secured an initial tranche of €60m from South African lenders. Steinhoff said that its Kika Leiner business, which has been grappling with a liquidity crisis, had been stabilised. A restructuring plan had been agreed upon on January 24. French retail chain Conforama’s funding had been "secured", and the company was expected to start drawing on a new loan faci...
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