South Africa’s retail holding company Steinhoff is said to have gained financial stability after it obtained monetary assistance from lenders in the country for interim liquidity support for the group’s European operations from its subsidiaries in South Africa.
According to the agreement, the South African lenders have agreed to offer an amount of €200m, €60m of which will be handed over to the company as the first instalment.
Steinhoff is seeking the necessary approvals and consent for further instalments of the balance.
Steinhoff noted that the funds are required to meet business-critical payments during the next phase of the group’s stabilisation plan.
Earlier this month, Pepkor Europe, which includes Poundland UK and Steinhoff UK sub-groups, is said to have entered an agreement with an investment firm for a £180m credit facility in order to finance its working capital and operational requirements.
The South African firm noted that it will be approaching some its creditors to support them by providing limited waivers under certain existing European financing arrangements.
According to Steinhoff, it will receive sufficient support from its relevant finance providers to obtain these limited waivers and noted there is no assurance that the company will be able to reach an agreement with its finance providers on acceptable terms or at all.