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More creditors give Steinhoff breathing space

The additional creditor will enable the retailer to restructure debts.

Steinhoff has won more creditor support to give the South African retailer time to restructure debts totalling 9 billion euro ($11 billion) in a fight for survival.

The company, which grew rapidly from a small local furniture outfit to a multi-national retailer, said on Tuesday that holders of 93%, 83% and 75.5% of three convertible bonds totalling 2.7 billion euros had agreed to a debt standstill agreement.

Steinhoff revealed holes in its accounts six months ago, shocking investors who had backed its reinvention, sending its shares crashing and leaving it scrambling to pay its debts.

The creditor support comes nearly a week after Steinhoff won support from creditor group representing 61% of the external debt of two European businesses used to fund its overseas operations.

Read: Steinhoff soars on support for standstill from most creditors

Creditors have agreed not to enforce their rights until the end of the month to allow Steinhoff time to clinch a debt restructuring agreement with its lenders.

Steinhoff has so far said all its debt would be reinstated at par and be given a common maturity date of three years from the completion of the restructuring agreement.

Shares in Steinhoff were up 1.5% at R1.31, valuing it around R5.5 billion, a reversal in fortunes for the company that was worth R240 billion six months ago.

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Wonder if this will affect share price tomorrow morning

In think share price will only make substantial moves once the financials are released….esp the audited statements in december. Use this time to accumulate. Hardly seems like the inevitable disaster which was punted by fund managers who missed the fraud in the first case anyway. Going the be a rocky road, probably with much restructuring, but everyone is better off if this thing survives. Cooler minds will prevail in the end.

I’m feeling rather optimistic for the first time. Start accumulating shares

I agree, bought more shares today

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