April 25, 2018 / 10:13 AM / 5 months ago

Steinhoff's former CEO Jooste gets creditor reprieve

CAPE TOWN, April 25 (Reuters) - The former chief executive of crisis-hit retailer Steinhoff has agreed to settle a $120 million civil claim against his company by three lenders by December, lender Absa said on Wednesday.

Markus Jooste, who is under fraud investigation by the South Africa police, resigned in December when Steinhoff uncovered accounting irregularities that sent its share price crashing.

The out-of-court settlement comes after lenders Investec , ABSA and financial group Sanlam had turned to the Cape High Court to liquidate one of the entities that holds Jooste’s wealth in a bid to recoup their money.

The entity, known as Mayfair Speculators, asked lenders to give it until December to raise money through asset sales to pay back what it owes, said Absa spokeswoman Phumza Macanda.

Court papers show that Mayfair owes Absa around 226 million rand ($18 million), Sanlam Capital Markets around 800 million rand and Investec roughly 250 million rand.

$1 = 12.4402 rand Reporting by Wendell Roelf Editing by Tiisetso Motsoeneng and Alexandra Hudson

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