Steinhoff International, which is still grappling with the consequences of an accounting scandal that wiped out R200bn in shareholder value, says Dublin-based Hamilton has withdrawn an appeal relating to the voting procedure in its proposed settlement plan.
Hamilton had appealed a court decision in June to reject requests for various measures relating to how voting would take place on any settlement plan, such as arrangements to ensure consultation and voting could take place digitally.
Hamilton is a litigation-funding company based in Ireland, which is seeking more than R16bn on behalf of about 14,000 retail investors, asset managers and pension funds in SA.
Hamilton, along with co-applicant Trevo Capital, had won a partial court victory on Friday that could pose a threat to the settlement process, with Steinhoff yet to provide an update on how its plans could be affected.
The Western Cape High Court voided Steinhoff’s guarantee of a £465m (R7.9bn) bond, a critical component of the firm’s settlement plan, and found it had violated the Companies Act when restructuring debt in 2019.
The embattled SA retailer has set aside about €1bn to be shared among all the claimants after a crash in the value of its shares due to an accounting scandal late in 2017. It is facing dozens of lawsuits in SA, the Netherlands and Germany.
Hamilton’s withdrawal also follows the Dutch Court of Appeal’s rejection, on June 21, of its appeal against a court decision in May to establish a committee of representation, which would vote on any settlement, rather than individual creditors.
“The Steinhoff group maintains that a global settlement is in the best interest of all parties and will continue to take steps to achieve such a settlement,” it said in a statement on Wednesday. “Further updates will be provided to the market in due course.”
Steinhoff's shares surged 21.38% to R1.76, the largest one-day increase since mid-February.
Update: July 7 2021
This article has been updated with share price information.
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