June 12, 2018 / 1:25 PM / 2 years ago

More creditors give South Africa's Steinhoff breathing space

Two Mattress Firm stores, a brand owned by Steinhoff, lie on either side of the street in Encinitas, California, U.S., January 25, 2018. REUTERS/Mike Blake

JOHANNESBURG (Reuters) - Steinhoff has won more creditor support to give the South African retailer time to restructure debts totalling 9 billion euro ($11 billion) in a fight for survival.

The company, which grew rapidly from a small local furniture outfit to a multi-national retailer, said on Tuesday that holders of 75 percent, 83 percent and 75 percent of three convertible bonds totalling 2.7 billion euros had agreed to a debt standstill agreement.

Steinhoff revealed holes in its accounts six months ago, shocking investors who had backed its reinvention, sending its shares crashing and leaving it scrambling to pay its debts.

The creditor support comes nearly a week after Steinhoff won support from creditor group representing 61 percent of the external debt of two European businesses used to fund its overseas operations.

Creditors have agreed not to enforce their rights until the end of the month to allow Steinhoff time to clinch a debt restructuring agreement with its lenders.

Steinhoff has so far said all its debt would be reinstated at par and be given a common maturity date of three years from the completion of the restructuring agreement.

Shares in Steinhoff were up 1.5 percent at 1.31 rand, valuing it around 5.5 billion rand, a reversal in fortunes for the company that was worth 240 billion rand six months ago.

($1 = 0.8477 euros)

Reporting by Tiisetso Motsoeneng; Editing by Jason Neely and Alexander Smith

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