Steinhoff has reached an agreement with its largest creditors, which could see them holding 80% of the company.with creditors entitled to the rest. The company On Thursday, Steinhoff said that an agreement has been reached with creditors representing 64% of its total debt. They have agreed to extend the maturity of the group services debt from the current maturity date of 30 June 2023 to at least 30 June 2026.
Steinhoff said that if shareholders agreed to the"maturity extension transaction" they would retain 20% of the economic interest in the company with financial creditors being entitled to the balance. If they did not agree to it, shareholders will no longer have any interest in the group. By late morning on Thursday, Steinhoff's share price lost 33% in reaction to the announcement, falling to 109c – from above 500c at the start of the year.
Protea Capital Management CEO Jean Pierre Verster said the announcement by Steinhoff made it clear that"time has run out for shareholders" and that control of the group will now transfer to the creditors of Steinhoff through this proposed transaction.