Binder Grösswang as advisor of the Creditors’ Co-ordinating Committee brings Steinhoff restructuring on track
The Steinhoff group and main parts of its creditors have entered into a Lock-up Agreement which includes a term sheet and a step plan to pave the way for a restructuring of the financial indebtedness of Steinhoff (including around EUR 7.5 bn held solely by Austrian holding entities). BINDER GRÖSSWANG represents the international creditors’ Co-ordinating Committee consisting of major banks and investment funds as Austrian counsel.
The successful signing of the Lock-up Agreement is result of intense and multilateral negotiations starting in December 2017 when accounting irregularities relating to Steinhoff became public and put the group under severe pressure. Since then, numerous steps have been taken in order to enable a successful restructuring (including certain asset disposals and the agreement of two support periods since the beginning of June).
“Given the highly complex and difficult situation, concluding the Lock-up Agreement is a huge success allowing a sustainable stabilisation of Steinhoff and at the same time protecting the interests of our clients” explains Gottfried Gassner.
“This restructuring has been and still is highly dynamic and exceptional because of its strong international inter-relationships, operational businesses all over the world, a diverse and international creditor structure and not least because of the ongoing investigations on accounting irregularities. Guiding our clients through this entire period, which constantly brought up new challenges such as the recent KIKA/Leiner sale, has been a very demanding but even more exciting task” adds Tibor Fabian.
In the following months, the long-form restructuring shall be finalised and implemented. Steinhoff is one of the biggest global retailers with more than 12.000 stores in over 30 countries (amongst them until recently KIKA/Leiner) and approx. 130.000 employees.
The BINDER GRÖSSWANG team advising the Co-ordinating Committee consists of Tibor Fabian (lead partner, finance), Gottfried Gassner (lead partner, restructuring), Georg Wabl (attorney at law, restructuring) and Maximilian Höltl (attorney at law, finance) who are supported by Christian Klausegger (partner, dispute resolution), Christian Wimpissinger (partner, tax), Clemens Willvonseder (attorney at law, tax), Mona Holzgruber (senior associate, corporate), Felix Kirkovits (senior associate, restructuring) and David Rötzer (associate, finance). BINDER GRÖSSWANG advises together with Allen & Overy LLP as international lead counsel.
Other advisors involved:
Steinhoff: Fellner Wratzfeld & Partner (Austrian counsel) and Linklaters LLP (international lead counsel)
Creditors’ Secondary Committee: DORDA Rechtsanwälte GmbH (Austrian counsel) and Latham & Watkins LLP (international lead counsel)
Convertible Bondholders: Eisenberger & Herzog Rechtsanwälte GmbH (Austrian counsel) and Kirkland & Ellis LLP (international lead counsel)