Steinhoff restructure challenged by creditor

Creditor LSW GmbH is challenging Steinhoff's plan to restructure its convertible debt into new secure loans.

Steinhoff, which is currently cleaning up its balance sheet after being outed for massive accounting irregularities over a year ago, announced on Thursday that a creditor was challenging them without reason. 

The restructure is focused on three series of equity-linked bonds, due over a period of three years starting from 2021, into a new secured loan. 

The voluntary arrangement was reached in December, at which time Steinhoff’s commercial director and CEO designate Louis du Preez (pictured) said:

“The agreements reached today with creditors of the group’s key finance companies are key to bringing in a new period of financial stability for the group and enabling management to focus on maximising the potential of the group’s various businesses.” 

In the statement subsequent to the challenge, Steinhoff said that LSW GmbH is in fact “an entity related to Andreas Seifert who has a dispute ongoing in the Austrian courts against Steinhoff Europe AG.” 

Seifert has repeatedly sued the group in many different jurisdictions.