October 15, 2018 / 6:39 AM / a month ago

Steinhoff asks creditors for restructuring extension

JOHANNESBURG, Oct 15 (Reuters) - South African retailer Steinhoff, has asked creditors for a one-month extension relating to its debt restructuring as it negotiates documents required to implement the plan, it said on Monday.

An accounting scandal wiped more than 90 percent off Steinhoff’s market value and forced it to sell assets to generate working capital.

Creditors agreed in July to hold off on their debt claims for three years, throwing the company a lifeline.

As part of the deal, all parties sought to start restructuring within three months of the lock-up agreement date of July 20.

The retailer now wants a one-month extension, it said in a statement, adding that “it remains the objective of the group to complete the restructuring as soon as possible.”

“Negotiations on the implementation documentation are now well advanced and the one-month extension to the long stop date will give us the necessary time to complete that process ahead of any necessary restructuring processes being launched,” acting group Chief Executive Danie van de Merwe said. (Reporting by Nqobile Dludla; editing by Jason Neely)

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