Embattled global retailer Steinhoff says it has reached an agreement of up to €78.1m (R1.37bn) with some of its former directors and their insurers, as it battles to settle lawsuits that threaten its survival.
The agreement with some of its former directors comes after Steinhoff announced in February it had reached an agreement with former auditor Deloitte. The deal, however, does not include former CEO Markus Jooste or former CFO Ben la Grange, who may still be the subject of claims from the group.
Steinhoff uncovered a €6.5bn (about R110bn) hole in its accounts in 2017, causing a share collapse and multiple lawsuits from former business partners and aggrieved shareholders, including former chair Christo Wiese.
Deloitte has offered as much as €77.94m to settle with those who relied on dodgy numbers to trade Steinhoff shares, as well as to other claimants. Steinhoff has offered €370m in the settlement, but is in the process of completing processes relating to companies in financial distress in the Netherlands and SA.
Litigation remains the biggest threat to the group’s survival and Steinhoff unveiled a settlement programme in July 2020 in a bid to bring to a close some of the dozens of lawsuits launched against it in SA, the Netherlands and Germany.
There is also pressure on local authorities to press ahead with prosecutions, with National Director of Public Prosecutions Shamila Batohi telling lawmakers earlier in March that a report into the alleged fraud by PwC was due at the end of the month and could bring the three-year investigation to a close.
Earlier in March, German prosecutors announced they had indicted three former executives, and another manager, over false accounting.
With Bloomberg
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