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Steinhoff wants to restructure convertible bonds via CVA

05.12.2018 − 

Steinhoff International Holdings now wants to restructure the convertible bonds of its subsidiary Steinhoff Finance Holding via a so-called "Company voluntary arrangement" (CVA) according to British insolvency law. This means that the Group will withdraw the "Consent Solicitations", which were originally intended to be used to obtain the consent of the creditors for the regrouping of the convertible bonds that will mature in 2021, 2022 and 2023. The "nominees" have already examined the CVA proposal submitted by Steinhoff together with the CVA for the rescheduling of Steinhoff Europe and have submitted a corresponding report to the British insolvency court on, among other things, the feasibility and the expected acceptance. The creditors of both Steinhoff companies can now inspect the respective CVA documents and vote on them at a lender meeting on December 14.

Steinhoff intends to convert the convertible bonds issued by Steinhoff Finance Holding into guaranteed secured loans with a term until December 31, 2021 and so-called payment-in-kind conditions. Interest payments are to be made every six months. In future, the convertible bonds will be transferred to private facilities without the right to exchange them for shares. The bonds that mature in 2021 and 2022 are also to be combined in a single loan. The bonds with a maturity until 2023, on the other hand, are to be continued as a separate loan. The Group intends to transfer both facilities to a new Luxembourg Steinhoff company as debtor.

The CVA of Steinhoff Europe includes the reorganization of the corporate structure through the establishment of new subsidiaries in Luxembourg, on the Channel Island of Jersey and in Great Britain. Almost all assets and liabilities of Steinhoff Europe will subsequently be transferred to the new companies. The existing debts are to be refinanced by a new loan, which will run through the Luxembourg company.

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