Steinhoff International Holdings NV, the South African retailer engulfed in an accounting scandal, on May 23 said that it had no African debt after repaying about €2 billion since January 2018.
Its only obligations in Africa were working capital facilities at its automotive business and its properties division, Stellenbosch-based Steinhoff said in a statement.
Steinhoff's declaration followed an announcement on May 23 by Steinhoff Africa Retail Ltd., a listed subsidiary, that it had completed the refinancing of 16 billion South African rand of shareholder funding.
The company, which owns brands such as Sleepy's in the U.S., Poundland in the U.K. and Conforama in continental Europe, said May 18 that it had provided its international creditors with a restructuring plan and sought a three-year extension on its outstanding debt, which stands at €9.6 billion.
Steinhoff on Dec. 6, 2017, disclosed accounting irregularities that sent its share price into a tailspin. They have lost more than 95% since then, wiping out more than €12 billion in market capitalization.
The revelation prompted lenders to suspend or withdraw credit, leaving Steinhoff scrambling to meet its debt commitments.
As of May 23, US$1 was equivalent to 12.54 rand.
