Steinhoff has reached deals with its former auditor Deloitte and US-based Conservatorium LLC that will halt the appointment of a restructuring expert to assist in Steinhoff’s pre-insolvency proceedings and see Deloitte offer an amount of up to €70 million (R1.22 billion) to claimants.
News of the deal saw Steinhoff’s share price rally almost 20% to R2.67 by 12:00 on Monday.
Steinhoff said in a statement: “Following a number of constructive engagements between the parties an agreement has been reached, in principle, between, among others, SIHNV [Steinhoff International Holdings NV], SIHPL [South African holding company Steinhoff International Holdings Proprietary Limited], Conservatorium and certain entities linked to Christo Wiese.”
Conservatorium is a group of financial institutions that extended funds to former Steinhoff chair Wiese to enable him to acquire the Steinhoff shares that underpin his R59 billion claim against Steinhoff.
The troubled company however said it is not a done deal as “this agreement is subject to a number of conditions”.
“The result of [the] agreement reached among the parties is that Conservatorium will withdraw the [insolvency] Application.”
Though the agreement sees Deloitte paying claimants, the audit firm admitted to no wrongdoing.
Steinhoff stated: “Deloitte does not in any way admit liability for the losses incurred by Steinhoff and its stakeholders as a result of the accounting irregularities at Steinhoff.”
More information and claim forms will be published on the Steinhoff Group Settlement website in due course.