Steinhoff International Holdings’s shares tumbled after said on Thursday it had reached an agreement with some of its largest creditors to extend the maturity of its debt.
In intraday trade the share was down 56.17% to 91 cents.
Steinhoff has been looking to reduce debt and financing costs following a 2017 accounting scandal that prompted about 90 separate legal claims against it.
The company's board of directors believed the agreement gave it a good platform to extend the maturity of its "group services debt" from June 30 2023 to at least June 30 2026, Steinhoff said.
Steinhoff said if shareholders agree to the deal, they would retain 20% of the economic interest in the equity of the group after the deal closes, with financial creditors entitled to receive the balance.
If shareholders did not agree, they would not retain any interest in the group, it said. - Additional reporting by Philippa Larkin
REUTERS