Wrap Text
Steinhoff - Update On Progress Of Financial Restructuring And Extension Of Long-Stop Date Under Lock-Up Agreement
Steinhoff International Holdings N.V.
(Incorporated in the Netherlands)
(Registration number: 63570173)
Share Code: SNH
ISIN: NL0011375019
Steinhoff Investment Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1954/001893/06)
JSE Code: SHFF
ISIN: ZAE000068367
STEINHOFF - UPDATE ON PROGRESS OF FINANCIAL RESTRUCTURING AND EXTENSION OF
LONG-STOP DATE UNDER LOCK-UP AGREEMENT
Steinhoff International Holdings N.V. (the “Company”) (together with its subsidiaries, the
“Group”)
On 11 July 2018 the Company announced that it had entered into a lock-up agreement in
connection with the restructuring (the “Restructuring”) of the financial indebtedness of the
Company, Steinhoff Europe AG (“SEAG”), Steinhoff Finance Holding GmbH (“SFHG”) and
Stripes US Holding, Inc. (“SUSHI”) (the “LUA”). Subsequent announcements on 19 July 2018,
20 July 2018 and 17 August 2018, all provided further updates on the LUA, which became
effective on 20 July 2018 (the “LUA Effective Date”).
The Group has received significant support from creditors through the creditor accession
process with the LUA having been acceded to by approximately 90 per cent. of the
creditors holding SUSHI’s US$200 million revolving loan facility (as well as creditors holding in
excess of 90 per cent. of SEAG’s external financial indebtedness and creditors holding in
excess of 95 per cent. of SFHG’s external financial indebtedness).
Since the LUA Effective Date, significant progress has been made in respect of a number
of the key elements required to implement the Restructuring as contemplated under the
LUA, which will provide continued stability for the businesses within the Group. A number of
significant milestones in stabilising the Group’s financial position have now been achieved,
including:
• The sale of the Kika-Leiner operating companies was completed on 13 July 2018.
Finalisation of the sale process of the Kika-Leiner property companies is at an advanced
stage, and completion is expected imminently. Further, an agreement has been
reached to sell the Puris Bad (bathroom) and Impuls Küchen (kitchen) furniture
manufacturing businesses and assets, which were considered non-core to Steinhoff.
• The restructuring of the financial indebtedness of the Company’s subsidiary Hemisphere
International Properties B.V. was successfully completed on 6 September 2018, resulting
in a new, secured, 3-year term loan facility of circa €775 million.
• The refinancing of certain financial indebtedness of Greenlit Brands Pty Ltd (formerly
known as Steinhoff Asia Pacific Group Holdings Pty. Limited) was implemented on 27
September 2018 and includes the amendment and restatement of certain intragroup
loans, as well as a new senior revolving credit facility and bilateral facilities of AUD$256
million for the refinancing of existing senior financing. The refinancing provides facilities
for the Greenlit businesses through to maturity in October 2020.
• The filing by the Company’s subsidiary Mattress Firm, Inc. (along with its subsidiaries,
Mattress Holding Corp. and Mattress Holdco, Inc., “Mattress Firm”, North America’s
leading speciality mattress retailer) of voluntary pre-packaged Chapter 11 cases in the
United States Bankruptcy Court for the District of Delaware on 5 October 2018 (the
“Mattress Firm Restructuring”). As part of the Mattress Firm Restructuring, Mattress Firm
has secured debtor-in-possession financing to fund operations during the Chapter 11
cases and commitments for a financing arrangement have been agreed with a four
year term that will become effective upon Mattress Firm’s exit from Chapter 11. The
Mattress Firm Restructuring is intended to strengthen Mattress Firm’s balance sheet and
optimise its store footprint, and is expected to accelerate the turnaround of the Mattress
Firm business.
• As part of the Restructuring and in connection with the Mattress Firm Restructuring:
o SUSHI, an intermediate holding company of Mattress Firm, has launched a
scheme of arrangement in England to facilitate the exchange of certain
liabilities which sit at SUSHI as part of a restructuring of the SUSHI financing; and
o The Mattress Firm sub-group has been moved within the Group structure to
become a subsidiary of SEAG. This move facilitates the restructuring of certain
material inter-company loans owed by SUSHI and the Mattress Firm Group.
In its announcement of 20 July 2018, the Company reported that the parties to the LUA
would seek to implement the Restructuring within three months (subject to an automatic
extension if certain conditions were met or any agreed extension).
The Company is pleased to report that discussions with the relevant creditors under the LUA
in relation to the implementation of the Restructuring continue to progress well and the
negotiations of the long form documentation required for the implementation of the
Restructuring are well advanced. In order to finalise such documentation, the Company
has today requested that creditors under the LUA provide their consent to an extension of
the long-stop date (currently 20 October 2018, being three months from the LUA Effective
Date) to 20 November 2018. It remains the objective of the Group to complete the
Restructuring as soon as possible.
Danie van de Merwe, Acting CEO, Steinhoff International Holdings NV said:
“Over the last three months we have made substantial progress with the restructuring
process, achieving a number of important milestones necessary to stabilise the Group’s
finances. During this period we have continued to receive significant support from creditors
under the LUA and we remain in positive discussions with them. 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.”
Shareholders and other investors in the Company are advised to exercise caution when
dealing in the securities of the Group.
JSE Sponsor: PSG Capital
Stellenbosch, 15 October 2018
Date: 15/10/2018 07:05:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
Sharenet Sites 
