Restructure will see creditors have an input into who runs Steinhoff's operating companies
Creditors will have a major input into Steinhoff OpCo boardroom hires and fires if they back new debt restructuring plans proposed by the embattled conglomerate.


Steinhoff International Holdings wants creditors to sign up to a lock-up agreement that that will reconfigure the Johannesburg and Frankfurt listed group's circa €9.4 billion debt pile over the next three years.

As part of the plan, creditor representatives on a new governance working group will have the power to consult with the company's nominations committee over changes to both of Steinhoff's supervisory and management boards.

Creditors will also have the right to nominate up to four out of a total of six directors of a new holding company to be created at the head of its Steinhoff Europe organisation.

The board of this new company will have the ability to determine the composition of the boards of the operating companies in that group cluster, which includes its UK operation.

Steinhoff, owner of UK chains Bensons for Beds and Harveys as well as pan-European retailer Conforama and U.S bed specialist Mattress Firm, will pay 10 percent annual interest on its debts under the terms of the restructuring proposal. Rather than be paid in cash, the interest will be rolled up and added to the total amount outstanding.

As an incentive to signing up to the lock-up agreement, Steinhoff is also proposing paying additional fees, which will be capitalised and added to the total. If Steinhoff gets the backing of sufficient debt holders, the plan will be implemented within the next three months.

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