Steinhoff weighs its next move after Andreas Seifert bombshell
The implementation of the company voluntary arrangement will now be delayed until the application brought by German entity associated with Seifert is resolved
Embattled furniture retailer Steinhoff is facing a new challenge to its attempts to strengthen its balance sheet, with former business partner Andreas Seifert opposing an agreement reached with creditors in December. The deal, referred to as a company voluntary arrangement (CVA), was reached with and approved by an overwhelming majority of creditors in December and two Steinhoff subsidiaries, Steinhoff Europe AG (SEAG), and Steinhoff Finance Holding Gmbh (SFHG). The implementation of the CVA would now be delayed until the application brought by LSW, a German entity associated with Seifert, had been resolved, Steinhoff said in a statement on Friday. CVAs allow financially distressed businesses to come to an agreement under UK law with creditors, often by negotiating more favourable lease agreements and allowing some outlets to close before leases expire. Markus Jooste, Steinhoff’s former CEO, told MPs in September 2018 that the group’s near-collapse had originated from a protracted d...
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