Steinhoff crashes almost a fifth after court blow to settlement plans
Company violated the Companies Act as it restructured debt to buy time, high court rules
05 July 2021 - 10:30
UPDATED 05 July 2021 - 19:18
Steinhoff International, which lost about R200bn in market value due to one of SA's worst accounting scandals, saw its shares crash almost a fifth on Monday after a Western Cape High Court ruling that threatens its multibillion-rand settlement process.
On Friday the court voided Steinhoff’s guarantee of a 2014 bond, a main component of the firm’s settlement plan, and found it had violated the Companies Act when restructuring debt in 2019 — which was critical to the group’s plans for settling lawsuits...
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