Steinhoff International Holdings NV, the South African retailer engulfed in an accounting scandal, on Feb. 6 said it had begun the process of seeking waivers from investors holding more than €2.6 billion of its debt.
The waivers relate to Steinhoff's failure to deliver certificates of compliance due to accounting irregularities, the company said in a statement. The furniture, household goods and general merchandise retailer on Dec. 6, 2017, disclosed that it had appointed an independent auditor to probe accounting irregularities and that its CEO had resigned with immediate effect.
Steinhoff, which operates Sleepy's in the U.S., Poundland in the U.K. and Conforama in continental Europe, said it was seeking waivers from holders of €465 million convertible bonds due 2021, €1.12 billion of convertible bonds due 2022 and €1.10 billion convertible bonds due 2023. All were issued by Steinhoff subsidiary Steinhoff Finance Holding GmbH.
Steinhoff, incorporated in the Netherlands and listed in Frankfurt, said Jan. 18 that it would seek waivers on its European financing arrangements.
The company, which has €10.70 billion in outstanding debt, said Dec. 19, 2017, that some lenders were withdrawing or suspending credit facilities, putting a squeeze on its liquidity.
Stellenbosch-based Steinhoff has been unable to file consolidated financial accounts for the fiscal year ended Sept. 30, 2017, due to its accounting issues. In addition, its financial reports for the fiscal years 2015 and 2016 need to be restated.
