Steinhoff shares jump on lifeline from creditors
Key European financial entities in group win backing for restructuring plan and the freezing for three weeks of any claims
News that Steinhoff had secured support from the majority of key creditors saw the share price surge 50% to a high of R1.66 in early morning trade on Thursday as short sellers moved to cover their positions. During the day the share price eased back to close just 13% firmer at R1.29 as it became evident the group remains in a very tight financial situation. The support has been provided to the key entities in the Steinhoff web, namely Steinhoff Europe (SEAG) and Steinhoff Finance Holdings, which are the principle finance companies of the group’s European business. In a Sens statement issued early on Thursday, Steinhoff said about 61% of SEAG’s external creditors were supporting the plan and the majority of the holders of Steinhoff Finance Holdings’s total convertible bonds had agreed to back the plan. The support has been provided for just three weeks to June 30, the day after the interim results are due to be released. The support measures are intended to help stabilise SEAG and St...
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