Steinhoff to halt dividends in fight for financial survival
Steinhoff will suspend dividend payouts until after the end of June, it said on Friday, as part of efforts to save money and convince creditors to waive some payments due in coming weeks. The multinational retailer is fighting for survival after it discovered accounting irregularities in December, sparking a sell-off that has wiped more than $10bn off its market value. As part of efforts to persuade lenders to back its proposals and waive their rights under its existing European financing arrangements, Steinhoff said it was also likely to agree not to undertake any acquisitions or mergers, and cancel any undrawn credit facilities. "While the company is confident that it will receive sufficient support from its finance providers to obtain these limited waivers, there can be no assurance that the company will be able to reach agreement with its finance providers on acceptable terms or at all," Steinhoff said. Nine banks have a combined exposure to Steinhoff of more than €500m, namely ...
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