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Steinhoff has received the necessary creditor support for its three-year debt standstill plan, which is aimed at providing the board with time to implement a restructuring of the group’s crippling €9.4bn debt. News of the support saw the Steinhoff share enjoy its strongest one-day gain in seven months as the share price surged 18.67% to close at R3.56 on Thursday. The debt restructuring provides shareholders with some prospects for recovering part of the value that was wiped out after the December 6 2017 announcement of the discovery of accounting irregularities within the group, which took 90% off the share value. However, analysts say the recovery will be limited. The steep level of debt combined with hefty interest payments could see the group face a debt burden of about €14bn at the end of the three years. Debt-for-equity swap On Thursday, an analyst said a debt-for-equity swap was inevitable, with creditors being offered shares in exchange for their debt. “I don’t see how they ...

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