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Steinhoff International Holdings has taken another step on the path to recovery after it said the majority of creditors back proposals to restructure its debts.

 

Holders of about 89 percent of Steinhoff debt have signed up to a lock-up agreement that will give the furniture and general merchandise conglomerate a three-year extension on some of its financial obligations, it said in a statement Thursday afternoon.


Steinhoff, which has been troubled by accounting irregularities that were first announced last December, has more than €9 billion of outstanding debts, some of which was due to be repaid shortly.


The lock-up agreement, which will see extra fees and rolled-up interest added to its loans, will help shore up Steinhoff's finances in the near-term, with a few final details remaining before it comes into force, the group said.


The restructuring plan will also see creditors have a bigger voice in the running of the group, including giving them a say over who joins the operating and holding company boards.


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