RESTRUCTURING
Steinhoff allowed a breather in Britain
The embattled global retailer gets space to restructure its balance sheet in the UK
Embattled global retailer Steinhoff International’s path has been cleared to implement a process in the UK that will provide it with breathing space to restructure its balance sheet, which is laden with €9.4bn (about R153bn) in debt. Steinhoff’s attempt to implement a company voluntary arrangement (CVA) in the UK as part of a bid to get its global operations back on track has been stymied since January by opposition from LSW GMBH, a group understood to have links to its former partner Andreas Seifert. On January 10, LSW challenged the CVA on the grounds of an alleged debt of about £291.4m it was owed by Steinhoff Europe. PODCAST: Hear from the Steinhoff whistleblowers Subscribe: iono.fm | Spotify | Apple Podcasts | Pocket Cast | Player.fm CVAs are used in terms of UK law by financially distressed businesses to come to an agreement with unsecured creditors and are often able to secure more favourable rental agreements. Steinhoff’s CVA would freeze debt repayments for three years.Stei...
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