Scandal-ridden retailer Steinhoff International Holdings NV (SIHNV) is a step closer to regaining stability after “contractual claimants” including former chairperson Christo Wiese, voted in favour of the company’s R25 billion settlement.
Steinhoff closed 5.26% stronger on the JSE after the embattled multinational told the market it received overwhelming support at the third creditor’s class meeting, on Friday.
The approval has made a way for the settlement of R136 billion in legal claims and the chance to move ahead and address the remaining challenges such as debt.
Closing the chapter on litigation claims will allow Steinhoff, the majority owner of Pepkor in Africa and Pepco in Europe, to focus attention on its mountain of debt, which exceed R151 billion and continue its recovery, since the fraud scandal in 2017.
“The meeting of the Steinhoff International Holdings Proprietary (SIHPL) Contractual Claimants to vote on the S155 proposal resumed today at 2pm and it obtained overwhelming sufficient support to pass the applicable statutory thresholds for approval from the SIHPL Contractual Claimants,” Steinhoff said on Friday.
Steinhoff said the two creditors’ class meetings held earlier last week also endorsed the proposed settlement. The vote means most of the claimants in South Africa and the Netherlands have approved the process.
The next step will see the group applying to the Cape High Court for an order approving the proposal.
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