Steinhoff urgent plea for more time gives investors jitters
Without the extension the original undertaking to support the board will cease to apply on June 30
An urgent request by Steinhoff for an extension of the support agreed to by most of its creditors in early June caused jitters among investors and pushed the fragile share price lower to a close of 122c on Wednesday. One analyst said the JSE Sens announcement about the urgent request showed just how precarious Steinhoff’s position was. In early June, Steinhoff reported that it had secured support from most of its key creditors for three weeks to June 30, which was the day after the group’s interim results were scheduled to be released. At that stage, creditors agreed that during the three weeks they would freeze their claims and not petition for any action that would cause Steinhoff Europe (SEAG) and Steinhoff Finance to enter into solvency proceedings. They also agreed not to seek to accelerate payment of any part of the debt or to bring legal proceedings against any member of the Steinhoff group. The support measures were intended to help stabilise SEAG and Steinhoff Finance and p...
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