Steinhoff calls in Moelis and AlixPartners to advise ahead of lenders’ meeting

0
1058

BERLIN, Dec 10 (Reuters) – Troubled international retail
conglomerate Steinhoff , whose shares plunged
last week after disclosing accounting problems, said on Sunday
it had appointed two advisory firms ahead of a meeting with
lenders on Dec. 19.

The South African company said it has appointed U.S.
investment bank Moelis & Co to advise the company on
talks with its lenders, and has asked management consultancy
AlixPartners “to assist on liquidity management and operational
measures”.

More than $14 billion was wiped off the market value of the
Johannesburg and Frankfurt-listed group last week after it
announced it was ordering an independent investigation into its
accounts and said its CEO was leaving.

“The group is currently fully focussed on safeguarding
operational liquidity to continue funding existing operations
throughout its various subsidiaries,” the company said on
Sunday.

“In this context, the group is asking for and requires
continued support in relation to existing facilities from all
its lenders to achieve an immediate stabilisation of the group’s
financing,” it added in a statement.

On Friday the company had said it was postponing its regular
annual lenders’ meeting in London from Dec. 11 to Dec. 19 as a
result of it having postponed its financial results pending the
outcome of the accounting investigation.

“The purpose of the meeting will be for the group to provide
an update on its ongoing operational and financial situation. An
agenda for the meeting will be circulated ahead of 19 December
2017,” the company said on Sunday.
(Reporting by Maria Sheahan; Editing by Greg Mahlich)