Steinhoff Extends Lock-Up Agreement Until February -- Update
November 19 2018 - 11:45AM
Dow Jones News
(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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