(Updated to add lock-up agreement extension, context.)

 
   By Carlo Martuscelli 
 

Steinhoff International Holdings NV (SNH.JO) said Monday that it has extended a lock-up agreement with its creditors until Feb. 20, 2019.

The South African retailer said that it plans to launch a company voluntary arrangement--a type of insolvency procedure--for its Steinhoff Europe AG subsidiary. It also said it will launch a consent solicitation process for a three series of Steinhoff Finance Holding GmbH bonds due in 2021, 2022, and 2023. The company said it will propose to restructure the bonds into guaranteed secured loans with a three-year maturity.

Steinhoff said that otherwise, the restructuring proceeds according to plan.

Earlier in the day, Steinhoff said that Danie van der Merwe, who helped lead the restructuring of the embattled company, will step down from his role as acting chief executive.

He will leave his position on Dec. 31, to be succeeded by Commercial Director Louis du Preez, but will stay on with the company until Dec. 1, 2019, in order to assist his replacement.

Mr. van der Merwe was appointed to the position in December last year, after previous Chief Executive Markus Jooste quit amidst an announcement that the company had identified possible irregularities in its accounts. Shares of the company--known as the IKEA of Africa--tumbled in the aftermath of allegations that the company hid losses and artificially inflated its valuation.

Mr. van der Merwe, chief operating officer before stepping into his new role, oversaw negotiations with creditors to restructure billions of euros worth of debt. Under the terms of the agreement--which is still being finalized--Steinhoff creditors agreed to a three-year extension on repayments, giving the retailer breathing room to restructure its sprawling international holdings.

Steinhoff said Mr. van der Merwe has accomplished his goals and decided to step down from his position.

Chairwoman Heather Sonn said that his successor Mr. du Preez brings extensive commercial and corporate experience to the role. He led negotiations of the restructuring process and developed relations with Steinhoff's key stakeholders, she said.

 

Write to Carlo Martuscelli at carlo.martuscelli@dowjones.com

 

(END) Dow Jones Newswires

November 19, 2018 11:30 ET (16:30 GMT)

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