On Monday afternoon Steinhoff announced that it had extended its ‘early-bird’ deadline for creditors to accept its debt restructuring plan. The group is currently appealing to its creditors to accept a lock-up agreement that would see Steinhoff not having to pay back any debt for three years.
Initially the early-bird deadline was set for 9pm South African time on Monday evening. This has now been moved to the same time on Tuesday. No reason was given.
The final deadline for creditors to accept the lock-up agreement is Friday July 20, but Steinhoff has created an early-bird incentive to encourage creditors to sign up earlier. Those that do will receive an additional payment from the group, if enough creditors sign up by this time for the agreement to take effect.
The company’s share price dropped immediately on the news that the deadline had been extended, sliding from R3.08 per share to as low as R2.81 before stabilising. Steinhoff shares had surged from R1.75 last week after the debt restructuring plan was announced.