Approval of R25 billion settlement a 'big milestone' for Steinhoff, says CEO | Fin24

Steinhoff's CEO Louis du Preez has described a decision by the Western Cape High Court to approve the retailer's settlement proposal as a 'big milestone' in its restructuring process.

2022-01-25 08:04:00 AM

Steinhoff's CEO Louis du Preez has described a decision by the Western Cape High Court to approve the retailer's settlement proposal as a 'big milestone' in its restructuring process.

Steinhoff's CEO Louis du Preez has described a decision by the Western Cape High Court to approve the retailer's settlement proposal as a 'big milestone' in its restructuring process.

'Best outcome'"This is a big milestone in our three-step plan," said Du Preez.  "We have maintained throughout that this is the best outcome for all the stakeholders."Our immediate attention will now be on implementation of the settlement and medium- and longer-term focus on step three of the restructuring plan."

Steinhoff's three-step plan refers to the retailer's blueprint to restructure and rebuild its business in the wake of the accounting scandal that broke in late 2017.Steps one and two encompassed making deals with creditors to delay repayments and"managing litigation risk" so that court cases do not force it out of business. 

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As part of the deal, claimants will have to drop all current and future legal actions against the retailer.  'Best outcome' "This is a big milestone in our three-step plan," said Du Preez.   "We have maintained throughout that this is the best outcome for all the stakeholders. "Our immediate attention will now be on implementation of the settlement and medium- and longer-term focus on step three of the restructuring plan." Steinhoff's three-step plan refers to the retailer's blueprint to restructure and rebuild its business in the wake of the accounting scandal that broke in late 2017. Steps one and two encompassed making deals with creditors to delay repayments and"managing litigation risk" so that court cases do not force it out of business.  Step three of the plan, meanwhile, refers to restructuring the group to reduce debt and high financing costs. We live in a world where facts and fiction get blurred In times of uncertainty you need journalism you can trust. For only R75 per month , you have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today.