Dutch investors’ group suspends class action against Steinhoff
Dutch Investors’ Association VEB says it does not want to trigger a damaging insolvency
Steinhoff got a welcome break on Wednesday when Dutch Investors’ Association VEB agreed to suspend its class action against the embattled retailer. The decision to suspend the action until April 2019 comes just weeks after the Dutch courts dismissed opposition from Steinhoff and granted VEB the right to proceed with its action on behalf of Steinhoff shareholders. The action by VEB is the most advanced of three class actions facing Steinhoff, which has written off more than €10bn of assets and has said restatement of its financials may have to go back to at least 2015.
VEB said the suspension would grant Steinhoff time to continue the restructuring of its business and to make further progress with its investigations and the preparation of its financial statements. Danie van der Merwe, Steinhoff’s acting CEO, said the group was involved in a complex reorganisation as it restructures its financial liabilities and financial statements. “This agreement allows us time to focus on co...