Steinhoff says liquidation could destroy settlement process 🔒
Tekkie Town’s former owners want Steinhoff to be liquidated. Picture: WALDO SWIEGERS/SUNDAY TIMES
Businessmen Bernard Mostert and Braam van Huyssteen sold their shoe business Tekkie Town to Steinhoff in 2017 for shares worth R1.8bn that lost most of their value months later when SA’s biggest corporate scandal was revealed. But Steinhoff also faces more than 100 legal claims totalling about R130bn from shareholders who say they were duped into buying a worthless stock through misleading information.
final settlement vote by contractual claimants such as Christo Wiese taking place on Friday afternoon. Following that, the settlement offer will need to be approved in both the SA and Dutch courts.“Where we are now is the product of years of negotiations [and] of very, very, very difficult discussions and negotiations [between] the new management of Steinhoff with creditors to find a position which is in everybody’s best interest.
The liquidation is not seeking to close down Steinhoff’s subsidiaries such as Pepkor, which owns companies like Ackermans and Incredible Connection, but to wind up its shareholding in profitable firms, said Duminy. A liquidation would allow the proceeds of Steinhoff to remain in SA rather than go to creditors abroad and allow for an independent investigation into the fraud at the firm, argued Mostert.
Steinhoff disagrees, saying that allowing SA courts to liquidate companies in foreign jurisdictions would set a precedent and is of enormous public interest.
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