DGAP-News: Steinhoff International Holdings N.V. : PROCESS UPDATE
DGAP-News: Steinhoff International Holdings N.V. / Key word(s): Miscellaneous
Steinhoff International Holdings N.V. : PROCESS UPDATE
10.05.2018 / 15:10
The issuer is solely responsible for the content of this announcement.
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STEINHOFF - PROCESS UPDATE
Steinhoff International Holdings N.V. (the "Company" and with its subsidiaries,
the "Group")
Shareholders are referred to the presentation by management at the Annual
General Meeting of the company ("AGM") held on 20 April 2018 ("the
Presentation"), in which the Group provided an update on various matters,
including, liquidity, external group financing and debt cluster treatment,
engagement with creditors, litigation, restructuring plan objectives, and an
update on the release of the financial statements. A copy of the Presentation
is available on the Company's website,
www.steinhoffinternational.com.
This announcement provides stakeholders with further insights and a process
update on key work streams.
Financing, Restructuring Plan and Debt Cluster Treatment
The Presentation contained a summary of the Group's external debt position as
at 31 March 2018. At that date the total outstanding external debt amounted to
circa EUR10.4 billion, with circa EUR8.7 billion attributable to Europe, circa
EUR1.4 billion attributable to South Africa and circa EUR0.25 billion to the US
operations. We set out below some further detail on the debt position.
South Africa
In South Africa the repayment of debt at the African Group level has progressed
well and a further circa EUR200m has been repaid since 31 March 2018. The Group
anticipates that repayment of the African Group Debt will be completed shortly.
Upon completion of the African debt repayment program the Group will have
successfully repaid approximately EUR2 billion of African debt since January
2018. Accordingly, save for working capital facilities of the automotive
business and the African properties division, the Group will have no remaining
African debt.
Europe and US
Discussions with the numerous lenders to the Group are progressing and it is
intended that the Group's restructuring plan will be presented at a private
lenders meeting scheduled to be held in London on 18 May 2018. The plan is to
present the Group's updated restructuring proposal to the lenders. This updated
restructuring plan will cater separately for the requirements of the various
groups of Lenders.
To date, the Group has relied on asset realisations to fund working capital,
interest and professional advisors' fees, but this is not sustainable, and
accordingly, the restructuring plan will include the Group's proposals for the
management of the Group's cash flows and ongoing working capital requirements.
It is imperative that a restructuring plan is agreed with stakeholders as soon
as possible in order to provide a more stable trading environment for the
Group's operations, its people, suppliers and service providers, and to allow
management more time to focus on and assist the underlying business.
Shareholders and vendor litigation
The VEB court hearing dealing with the preliminary motions filed by the Company
will be heard in Court in Amsterdam before the end of September 2018. The final
date of this hearing is still to be set by the Court. These preliminary motions
include a request by the Company to institute contribution proceedings against
the former CEO, Markus Jooste.
The Company has, since the AGM, received legal proceedings requesting the
authorisation of model case proceedings (German class action). It is in the
process of considering the claim and obtaining the appropriate legal advice.
Claims by entities connected to the former Chairman, Dr Christo Wiese have also
been received by the Group. The position in respect of Dr Wiese and the
entities associated with him is different to that of other vendor and
shareholder claims, due to the intimate involvement of Dr Wiese in and with the
Group over many years. The Company shall, in order to protect the Group and its
stakeholders, use all means and resources available to it to vigorously defend
the Wiese entities' action.
Furthermore, the group has received demands from entities connected with Mr GT
Ferreira (circa EUR100m) and the Tekkie Town vendors (circa EUR120m).
If and when initiated, these claims will be considered in the context of the
Group's anticipated restructuring.
PwC investigation and Interim results
The Group has received feedback from PwC in respect of the outcome of the first
four and half months of their forensic investigation and is considering this in
conjunction with its auditors.
As part of the PwC process, the roles and responsibilities of those previously
at the helm of the Group are being investigated and appropriate action shall be
taken by the Group as soon as practically possible. Further announcements in
this regard are anticipated once legal advice has been obtained in respect of
the findings of PwC. The Group is also giving consideration to reclaiming
bonuses paid in the past to certain senior executives under the relevant Dutch
code (to the extent applicable and appropriate).
The PwC feedback substantially aligns with and confirms the irregularities
identified by Deloitte.
The investigation is reviewing the validity and recoverability of certain
non-South African assets which were initially estimated to be in the region of
EUR6bn. In addition, it has since emerged that the expected overstatement of
profits and the accounting treatment of related parties may also result in
material additional impairments of intangible and other assets. The extent of
this increase is still being calculated and investigated and will form part of
the June 2018 presentation dealing with the interim results of the Group.
The Group is making every effort to ensure that its unaudited interim results
for the 6 month period ending 31 March 2018 are published before the end of
June 2018, including an unaudited balance sheet for 30 September 2017.
These results will provide greater detail in relation to the nature and extent
of the accounting irregularities albeit in unaudited form.
The Group aims to release its full year audited 2017 results by the end of
December 2018 and the audited 2018 results before the end of January 2019.
Current trading
The Group's business portfolio includes strong businesses as well as other
businesses for which turn-around plans are being implemented. A trading update
of these businesses for the 6 months ended 31 March 2018 will be included in
the June 2018 results announcement.
Shareholders and other investors in the Company are advised to exercise caution
when dealing in the securities of the Group.
Stellenbosch, 10 May 2018
Hinweis nach §34 WpHG zur Begründung möglicher Interessenskonflikte: Der Verfasser von o.g. Beitrag kann Short- und/oder Long-Positionen in der/den behandelte(n) Aktie(n) halten.