Steinhoff Seeks Backing for Three-Year Debt Restructuring Deal

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Steinhoff International Holdings NV began seeking sign-off from lenders for a debt restructuring plan that will support the South African retailer’s balance sheet for three years and prevent a potential collapse, Bloomberg News reported. The owner of chains including Mattress Firm in the U.S. and Conforama in France has been negotiating for months with creditor groups represented by financial advisers FTI Consulting, Houlihan Lokey Inc. and PJT Partners Inc. to reach an agreement on a way to postpone the repayment of borrowings. In May, it proposed a three-year extension across all its holding companies’ loans and bonds from the restructuring date, with no cash interest payments owed for the period. Steinhoff has been on the brink of insolvency since December, when it revealed accounting irregularities and said Chief Executive Officer Markus Jooste had quit. Read more.