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STEINHOFF INTERNATIONAL HOLDINGS N.V. - Update On Creditor Support Letter Extensions, Financial Restructuring And H1 Results

Release Date: 29/06/2018 11:00
Code(s): SNH SHFF     PDF:  
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Update On Creditor Support Letter Extensions, Financial Restructuring And H1 Results

Steinhoff International Holdings N.V.
(Incorporated in the Netherlands)
(Registration number: 63570173)
Share Code: SNH
ISIN: NL0011375019

Steinhoff Investment Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1954/001893/06)
JSE Code: SHFF
ISIN: ZAE000068367
(“Steinhoff Investments” or the “Issuer”)

UPDATE ON CREDITOR SUPPORT LETTER EXTENSIONS FOR STEINHOFF EUROPE AG AND STEINHOFF
FINANCE HOLDING GMBH, FINANCIAL RESTRUCTURING AND H1 RESULTS
Steinhoff International Holdings N.V. (the “Company” and with its subsidiaries, the “Group”)

Extension of Support Letters

The Company refers to its announcements on 6 June 2018 and 12 June 2018 concerning the
entry by Steinhoff Europe AG (“SEAG”) and Steinhoff Finance Holding GmbH (“Holding”) into
formal letters of support with certain of their creditors (the “Original Support Letters”) and its
announcement of 27 June 2018 seeking certain amendments to the Original Support Letters
(the “Amended Support Letters”), primarily to extend the support period from 30 June 2018 up
to and including 20 July 2018.

The Group is pleased to announce that it has now received the following levels of support from
its creditors to the Amended Support Letters:

   (i)     creditors representing 85% of the external debt of SEAG;

   (ii)    holders of 85% in aggregate nominal amount of the series of convertible bonds due
           2021 issued by Holding;

   (iii)   holders of 94% in aggregate nominal amount of the series of convertible bonds due
           2022 issued by Holding; and

   (iv)    holders of 79% in aggregate nominal amount of the series of convertible bonds due
           2023 issued by Holding,

and that the support period has been duly extended up to and including 20 July 2018.

Restructuring Update

The Company has reached agreement on the key commercial terms for the restructuring plan
with members of the ad hoc committees of third party creditors of SEAG, Stripes US Holding
Incorporated and Holding and the coordinating committee in respect of the Group’s
European creditors (the “Committees”) which takes into account the features of the
restructuring framework outlined in the Company’s presentation to the Group’s creditors on 18
May 2018.

The restructuring plan is intended to: (i) ensure fair treatment across the various creditors groups
having regard to their existing rights and claims; and (ii) provide stability to the Group and its
stakeholders to enable:

    •   management to focus on supporting and delivering value at the Group’s operating
        businesses;

    •   an extended period of time in which to achieve a deleveraging of the Group; and

    •   a detailed assessment of all contingent litigation claims.

The Group is finalising the terms of a lock-up agreement (the “Lock-up Agreement”) with
respect to the implementation of the restructuring plan, which will give effect to and have
appended to it the term sheet and an implementation steps plan. The Lock-up Agreement is
designed, among other matters, to impose a standstill obligation on relevant creditors as
regards taking steps to seek the enforcement of their debts against certain of the Group’s key
finance companies or the Company for an agreed lock-up period so as to enable the formal
documentation required to implement the restructuring plan to be developed.

When the form of the Lock-up Agreement has been finalised with the Committees, a further
update will be provided to the market on the detailed terms of the restructuring plan and the
manner in which creditors outside of the Committees may accede to the terms of the Lock-
up Agreement.

Discussions regarding a potential restructuring of the financial indebtedness of Hemisphere
International Properties B.V. are ongoing, and the Company will provide a further update to
the market in due course.

H1 Results

Further to the Company’s announcement on 18 May 2018, the Company will be releasing the
unaudited consolidated interim results of the Group for H1 2018 later today.

Shareholders and other investors in the Company are advised to exercise caution when
dealing in the securities of the Group.

JSE Sponsor: PSG Capital

Stellenbosch, 29 June 2018

Date: 29/06/2018 11:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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