SHARE HITS RECORD LOW
Steinhoff to meet lenders on debt restructuring
Embattled global retailer Steinhoff International is facing a tough few weeks, with the company expected to meet its lenders later in May to come up with a plan to restructure its enormous debt. The share price has plunged more than 95%. At close of trade on Friday, it was at a record low of R1.91, reducing its market capitalisation to R8.2bn. Reports emerged last week that auditors PwC would investigate why Steinhoff Austria distributed shares worth R198bn back to its parent company in 2016 when the subsidiary was valued at only R19.9bn. It was also reported that acting CEO Danie van der Merwe repaid a R26.4m loan backed by company shares. The loan was taken out before the stock collapsed in November. Bloomberg reported Steinhoff will meet lenders on May 18 to discuss restructuring debt of about R155bn. Market watchers fear that the retailer may not have enough money to fend off creditors and settle future litigation from shareholders. Independent retail analyst Syd Vianello said t...
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