July 19, 2018 / 11:05 AM / 3 months ago

Steinhoff says around 90 pct of creditors support debt lock-up

JOHANNESBURG, July 19 (Reuters) - Steinhoff said on Thursday that around 90 percent of creditors for several subsidiaries supported an agreement to hold off debt claims for three years, an important step in restructuring the scandal-hit South African retailer.

Steinhoff said investors holding 89 percent of the debt of Steinhoff Europe AG (SEAG) and 89 percent of the debt of Stripes US Holding Incorporated had given initial consent to a so-called “lock-up agreement”, which is still being finalised.

Between 92 and 99 percent of investors holding bonds issued by Steinhoff Finance Holding GmbH also give their support to the lock-up, the company said in a statement.

Johannesburg-listed shares in Steinhoff were up almost 8 percent after the announcement.

Steinhoff needs at least 75 percent of creditors of its subsidiaries to sign up to the lock-up agreement by a deadline on Friday. An “early bird fee” deadline for creditors to sign up to the agreement expired on Wednesday.

Once enough creditors are locked in, Steinhoff will begin restructuring its debt within three months.

Reporting by Tanisha Heiberg; editing by Alexander Winning and Jason Neely

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