Steinhoff’s creditors gain second 24-hour extension
Steinhoff’s creditors were given a second 24-hour extension to sign up to a three-year lock-up agreement that would freeze their claims against the beleaguered company. Its share price shot up to a three-month high of R3 on Wednesday as investors await the response to the second extension of the "early bird fee" deadline for creditors to agree to a three-year freeze on claims. The creditors are being offered returns of between 10% and 15% to back the three-year standstill. The Steinhoff board is hoping the holders of €9.4bn of the group’s debt will agree to give them the time necessary to restructure the group’s finances without enforcing their claims. Enforcing their repayment claims would result in a fire-sale of some of Steinhoff’s non-South African businesses.
The initial deadline for "early bird" acceptance was July 16. The board has until Friday to secure the necessary backing for its lock-up agreement. The standstill agreement that was initially put in place in June exp...
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