Steinhoff’s share price climbs above R3 on debt restructuring news
Embattled retailer Steinhoff International’s share price climbed as much as 26.99% on Thursday morning to above R3, extending gains made on Wednesday, when the group announced it was negotiating with creditors.This brought total gains made since Wednesday to 48%, when Steinhoff had announced it was talking to creditors about a "lock-up" agreement to restructure its debt, possibly for three years.Analysts, however, cautioned that it was not certain Steinhoff would receive the backing it needed from creditors, who are able to sign up to its plan until 9pm SA-time on Monday.An informed decision on the effect of this restructuring would have to wait until then, Mark Hodgson, an analyst at Avior Capital Markets said on Thursday.Steinhoff’s share price has fallen 94% since December, when it announced it would need to restate prior results due to accounting irregularities, as well as the departure of its CEO Christo Wiese.The extent of the irregularities, as well as possible civil action f...
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