Steinhoff extends deadline for debt standstill deal, and shares plunge
Steinhoff International shares gave up as much as 9% on Monday afternoon, after the scandal-plagued retailer said it had extended a deadline by a day in which creditors had to agree to a three-year debt standstill. Initially, the deadline to secure 75% of the creditors to agree to a so-called lock-up agreement was set was for July 16. The agreement also qualifies creditors for an early-bird fee. Over the past week alone, the share price gained 86% — off a very low base — after the company said it had launched a consent process for a lock-up agreement that paved the way for debt restructuring. Steinhoff Europe and Steinhoff Finance will be focal areas for debt restructuring. Steinhoff International has been battling to put out a raging fire since December, when it disclosed accounting irregularities that the claimed the scalp of then CEO Markus Jooste. The three years will give management time to consider the full implications of the PwC investigation, which is expected to be wrapped...
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