Steinhoff gets lawsuits backing, but ...
Steinhoff has been emboldened in its attempt to settle some 90 lawsuits for R18.7bn after all but one of its creditors voted in favour of a settlement, Die Burger reports.
The beleaguered company is facing claims in the region of R137bn and started a process in October to obtain a mandate from creditors. Steinhoff has announced it had received ‘overwhelming support’ for the proposal.
The only creditor who voted against the settlement is Centerbridge Partners, a major shareholder in the American company Conservatorium.
Centerbridge claims an interest in the claim by Christo Wiese against Steinhoff and holds debt instruments of Steinhoff Europe AG.
Centerbridge’s vote against the settlement means that only 93% of the European debt instrument holders are in favour of the settlement when 100% is required.
Steinhoff chief executive Louis du Preez says they will now apply in terms of English company law for a scheme of arrangement.
Du Preez says the scheme of arrangement may take longer to complete but would only require 75% support.
The British court process will start this month.
Article disclaimer: While we have made every effort to ensure the accuracy of this article, it is not intended to provide final legal advice as facts and situations will differ from case to case, and therefore specific legal advice should be sought with a lawyer.
