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Liquidation proceedings against Steinhoff can proceed

Court dismisses intervention application; states SA courts have jurisdiction.
The headquarters of Steinhoff International, in Stellenbosch. Image: Dwayne Senior, Bloomberg

The former owners of Tekkie Town can proceed with their liquidation application against Steinhoff International, after the Western Cape High Court dismissed the intervention application of two parties, and confirmed that the local courts have jurisdiction to hear the case.

The court dismissed the applications of SIHNV Financial Creditors (a group representing Steinhoff creditors) and Frederic Verhoeven and Christiaan Robert Zijderveld (two Dutch administrators who were administering settlement proceedings on behalf of Steinhoff in the Netherlands) to intervene and oppose the liquidation application.

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The court also ruled that the South African courts have the jurisdiction to hear the liquidation application.

The judgment, therefore, paves the way for the Tekkie Town owners to continue with the liquidation application, which is set to resume on Thursday.

The former Tekkie Town owners, including Braam van Huyssteen and Bernard Mostert, sold their interest in the business to Steinhoff in 2016 for R3.2 billion in Steinhoff shares.

However, these shares became virtually worthless when Steinhoff’s share price imploded in December 2017, after severe accounting irregularities emerged.

The former Tekkie Town shareholders did not institute a claim against Steinhoff as other investors did, but instead initiated legal proceedings for their former business to be returned to them.

Read: Wiese backs legal settlement as Steinhoff claimants vote

However, earlier this year, they filed for Steinhoff’s liquidation.

Mostert said in response that the “attack on our bid to liquidate Steinhoff could have been derailed by the attempted intervention of the hedge funds that bought Steinhoff debt after the revelation of the fraud and also by the technical argument around whether South African law provides for the winding up of an external company.

“There was also an attempted intervention from the Dutch administrators who participate in Steinhoff’s self-architected settlement proposal. We are grateful that the ruling on all three of these issues went in our favour and now we can continue with our bid to have Steinhoff liquidated and bring the fraud and who are the beneficiaries of the fraud into the open.”

In response, Steinhoff’s shares tanked as much as 40% on Monday, before recovering to trade down only around 10%.

Steinhoff intraday share movement

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COMMENTS   22

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I seemed to have timed my sell order well (sold last Thursday @R3.56). Hoping Steinhof continues to tank tomorrow to give me opportunity to buy again.

You got lucky. It can’t happen forever.

No Bro. He ‘timed it’. He is a pro. He knows what he is doing. He has a MATRIC that he is so proud of.

Matric pre 1994 was also a backward joke. The old regime never really took education seriously.

Amazing how people are so proud of mediocrity. The system was designed to get inbred farmers through. Guess we all have to hold onto something. Luckily I don’t base myself around a matric! Imagine being proud of a matric. Lol

You’re on fire again Bib/Bibby/Aonk.

Show us on the doll where the Afrikaner touched you.

Big time exex from Bloem you say??? You feeling bad you do not have matric? Probably some small, mediocre 10 employee company.

Uncalled for comments “Bro”, just like mine.

I’m proud of the matric pass I obtained in 1988, even though it was obtained under the previous regime. I held 2 part time jobs (Shoprite – R2.35 p/h, KFC R15 for an 8 hr shift) and studied part time for a Bcompt degree). In 2019, I was retrenched after having worked 9 yrs for a government entity. (Indian professionals are persona non grata these days). I reduced my bond with my payout and access those funds to dabble in the JSE. So with 10% luck and 90% effort, I took a punt on Sasol, Arcelor Mittal and few other shares and its paying off.

Can we please refrain from the offensive and vitriolic name calling of an ethnic group? It’s tacky and shows ill breeding.

Narcissistic personality disorder: a mental condition in which people have an inflated sense of their own importance, a deep need for excessive attention and admiration, troubled relationships, and a lack of empathy for others.

Your Vega is off the charts.

Nice. SA courts must be bullied by international interests.

This one’s getting as roller coaster as crypto.

Up, down and all around- not sure if it’s Arthur or Martha. Or is that Wiese or Jooste?

At the end of the day maybe it’s Mostert and Vanhuysteen to prevail, if not pierce the veil?

Another great entry point.

If anyone thinks TT will prevail when they still braai with markus they are mad. There’s a reason he’s fighting this liquidation so hard.

Current business not doing so well. Well, because they sell shoes from China. Not really a great biz model.

Check the looting if tekkie town is the reason Steinhoff is liquidated. All those cashiers, security staff that will be laid off at Pepkor, other subs.

Tekkie town deserve to take steinhoff to the cleaners

They do?

3% of Steinhoff’s group revenue? You are an imbe
Cile

Agree – they are treated differently to that Great SA businessman who appointed the current CE, who was offered a much better deal.

Let the truth come out – the truth of whether the news came ‘out of the blue’ and whether it was part of carefully orchestrated greedy deal.

The last word over this has long not been written – and with the past CE turning State Witness, sparks will still fly.

This court case is just part of the procedure that needs to be followed. No way the judge will rule in favour of liquidation as more than 75% of creditors agreed to the litigation settlement. PIC also heavily invested. The judge won’t endanger people’s pensions. Thousands of SA jobs also on the line if they decide to liquidate.

“now we can continue with our bid to have Steinhoff liquidated and bring the fraud and who are the beneficiaries of the fraud into the open.”

How novel is that!!!

Guys! I will say it again. Steinhoff is too big to fail. Too many jobs will go. Pension funds will suffer.

Sorry the legalities out and let’s move on.

Liquidation is the only way forward given that the CE admitted the co was insolvent and certain creditors/shareholders have been preferred to others (also a requirement for liquidation).
I suppose the invitations for the CE to hunting and dinners in Karoo and WestCoast will end.

Waste of time. Will proceed then get thrown out.

Tekkie town (like other investors) are not above seeing losses. Bet you Wish you spent some time on due diligence now (and not a handshake from markus jooste your pal) huh Bernard mostert?

Braam – hopefully u reading this…. But if u pull this off, I’m gonna come up all the way from cape-town to Jefferys with a bottle of champagne to celebrate with u guys….

These scoundrels need to be taken for every cent they have….. The old one hiding out in cliffton aswell.

When piet starts to squeel in the press – u know the screws are tightening…
No mercy must be shown on any of them.

End of comments.

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