-More creditors give South Africa's Steinhoff breathing space
(Correct percentage of bonds holders in paragraph 2 to 93
percent from 75 percent)
JOHANNESBURG, June 12 (Reuters) - Steinhoff
has won more creditor support to give the South
African retailer time to restructure debts totalling 9 billion
euro ($11 billion) in a fight for survival.
The company, which grew rapidly from a small local furniture
outfit to a multi-national retailer, said on Tuesday that
holders of 93 percent, 83 percent and 75.5 percent of three
convertible bonds totalling 2.7 billion euros had agreed to a
debt standstill agreement.
Steinhoff revealed holes in its accounts six months ago,
shocking investors who had backed its reinvention, sending its
shares crashing and leaving it scrambling to pay its debts.
The creditor support comes nearly a week after Steinhoff won
support from creditor group representing 61 percent of the
external debt of two European businesses used to fund its
Creditors have agreed not to enforce their rights until the
end of the month to allow Steinhoff time to clinch a debt
restructuring agreement with its lenders.
Steinhoff has so far said all its debt would be reinstated
at par and be given a common maturity date of three years from
the completion of the restructuring agreement.
Shares in Steinhoff were up 1.5 percent at 1.31 rand,
valuing it around 5.5 billion rand, a reversal in fortunes for
the company that was worth 240 billion rand six months ago.
($1 = 0.8477 euros)
(Reporting by Tiisetso Motsoeneng
Editing by Jason Neely and Alexander Smith)
First Published: 2018-06-13 16:01:48
Updated 2018-06-13 16:02:51
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