Steinhoff has argued that letting a High Court decision that the case to liquidate it be heard in SA stand will create a precedent that could backfire and damage relationships with foreign courts.

A Business Day report says Steinhoff’s appeal to the Constitutional Court comes after High Court Judge Hayley Slingers ruled the case to liquidate Steinhoff, which owns SA firm Pepkor and European retailer Pepco, can be heard in Cape Town even as the company is registered in the Netherlands.

Steinhoff said in legal papers that if a court in SA tries to liquidate it, this will undermine the Netherlands court process and could have repercussions far beyond itself and damage mutual respect between European and SA courts, which sometimes collaborate on cross-border matters.

In court papers filed at the higher court, Steinhoff also reveals that claims against it by shareholders who say they were misled and bought a worthless share amount to R184bn.

In an affidavit, Steinhoff CEO Louis du Preez said: ‘The proposed appeal raises an important question of law, namely the jurisdiction of the SA High Court to liquidate a foreign external company that is not incorporated in SA. And that is currently subject to the supervision of the bankruptcy courts of another country.’

Steinhoff says if SA courts decide to liquidate it, they are undermining European courts.

It could also damage liquidation cases of SA companies with foreign assets that require any measure of cross-border enforcement because European courts may well respond unkindly to orders by SA courts if SA courts have ignored the Dutch Steinhoff insolvency proceedings.

Full Business Day report (part 1)

Full Business Day report ( part 2)