Dutch court ends Steinhoff as we know it
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A Dutch court has confirmed Steinhoff's plan to switch from a publicly listed company owned by shareholders to a delisted group under the control of its creditors.
The decision was handed down shortly after news broke that a German court had issued an arrest warrant for Steinhoff's former CEO, Markus Jooste.
Once one of South Africa's largest and most successful companies, the furniture retailer never truly recovered from the financial shock of a fraud scandal, which has dogged its every step since Jooste resigned in late 2017.
While it sought to keep afloat by selling shares in its subsidiaries and selling off some of its prize assets, its debt burden kept growing larger. After finally facing the reality that it would never be able to pay off its €10.2-billion (R200-billion) debt burden by the due date of 30 June this year, it changed tack to seek out a deal with financial creditors to forestall a messy liquidation.
The deal, which has the group's financial creditors taking over 80% of its equity in exchange for a three-year debt repayment holiday, has now been upheld by a Dutch court. The matter was heard in Amsterdam where Steinhoff is registered.
"[Steinhoff] and its subsidiaries will now proceed to implement the ... restructuring plan, which is expected to close on or before 30 June 2023," Steinhoff said in an update to shareholders on Wednesday.
The court rejected a petition by a shareholder body that had asked for the deal to be blocked on the basis that it discriminated against shareholders, who would not get paid out for their shares.
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