Scandal-plagued Steinhoff International’s shares recovered as much as 39% on Wednesday afternoon, after the retailer said it had launched a consent process for a lock-up agreement regarding the restructuring of its debt.

The debt restructuring relates to financing of companies in the Steinhoff stable, namely Steinhoff Europe and Steinhoff Finance, as well as Stripes US Holding.

Steinhoff said in a statement that the agreement was the culmination of several weeks of discussions with creditors. The lock-up agreement imposes agreed, limited recourse and stand-still obligations on internal and external creditors to facilitate the implementation of a debt restructure, which it expects to last for three years. This is to ensure Steinhoff and its stakeholders are provided with stability.

Steinhoff International has been battling to put out a raging fire since December, when it revealed accounting irregularities that the claimed the scalp of then CEO Markus Jooste.

Steinhoff International’s non-South African debt amounts to €9.5bn, which the board has said created a challenging liquidity position.

The shares were up 19.25% to R2.26 in late trade on the JSE, giving the company a market value of R9.7bn.