The embattled retail company Steinhoff International Holdings’ on Monday announced that creditors had approved a proposed debt-restructuring plan.
While shareholders voted against this, the retailer can now approach a Dutch court to give the scheme the go-ahead.
“As a next step, Steinhoff will consider whether it intends to request the court to confirm the Whoa Restructuring Plan,” the company said in a statement.
“Some 10,38% of the class of SIHNV shareholders voted in favour of the Whoa Restructuring Plan.
This is less than two thirds of the nominal value of SIHNV shares of the relevant members of the class of SIHNV shareholders that voted in respect of the Whoa Restructuring Plan.
“The class of SIHNV shareholders has therefore not approved the Whoa Restructuring Plan,” the company stated.
The restructuring plan will also see Steinhoff delist from the Frankfurt and Johannesburg stock exchanges.
In 2017 the company made headlines for accounting fraud in what is said to be South Africa’s biggest corporate fraud, with its executives facing criminal charges.
Earlier this month, Steinhoff announced the sale of its subsidiary, Mattress Firm, to Tempur Sealy International, for US$4 billion (N$74 billion).
Mattress Firm is a speciality bed retailer in the United States, with more than 2 300 retail stores nationwide.
Tempur Sealy and Mattress Firm’s combined global footprint will include about 3 000 retail stores, 30 e-commerce platforms, 71 manufacturing facilities, and four state-of-the-art research and development facilities worldwide.
The company, which is technically insolvent with a N$1-billion market value, has been forced to sell off assets to settle claims worth billions.
– IOL News
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