JOHANNESBURG (Reuters) – Steinhoff’s creditors agreed to hold on their debt claims for three years, the embattled retailer said on Friday, throwing a lifeline for the South African retailer caught in the throes of an accounting scandal.
The parties will now seek to implement the restructuring within three months, the retailer said in a statement. Steinhoff’s shares initially rose 3 percent in response to the news, but later pared its gains to trade down 1.69.
It is fighting for survival after revealing multi-billion euro holes in its balance sheet that wiped more than 90 percent off its market value and forced it to sell assets to fund working capital.
Reporting by Nqobile Dludla; Editing by James Macharia