Creditors make last step in the financial restructuring of the Steinhoff-Group with Binder Grösswang

On 13 August 2019, the financial long-term restructuring of the Steinhoff-Group was finally implemented via an Englisch Company Voluntary Arrangements (CVA).

The CVA is result of intense and multilateral negotiations which started in December 2017 when the Steinhoff-Group came into financial difficulties because of the announcement of accounting irregularities. Binder Grösswang advised the international creditor Co-ordinating Committee consisting of banks and funds since the beginning. Liabilities in the billions involve Austrian holding companies. One important step of the restructuring was the sale of KIKA/Leiner in summer 2018.

“The restructuring of ‘Austrian’ liabilities in the billions via an English restructuring tool is unprecedented so far. In this case, this was the only way to find bulletproof solutions for the numerous and complex challenges which came on the table”, says Gottfried Gassner.

“In order to protect the interests of all involved parties and especially the creditors whose claims were at risk, assets and liabilities had to be analysed and newly structured in every detail. Without involvement of highly professional financial and legal advisors from all affected countries, this wouldn’t have been possible”, adds Tibor Fabian.

The core team of the Co-ordinating Committee at BINDER GRÖSSWANG consisted of Tibor Fabian (Lead Partner, Finance), Gottfried Gassner (Lead Partner, Restructuring), Georg Wabl (Attorney at Law, Restructuring) and Maximilian Höltl (Attorney at Law, Finance).

They were supported by Christian Klausegger (Partner, Dispute Resolution), Christian Wimpissinger (Partner, Tax), Robert Wippel (Counsel, Finance), Clemens Willvonseder (Attorney at Law, Tax), Clarissa Nitsch (Attorney at Law, Dispute Resolution), Mona Holzgruber (Associate, Corporate/Restructuring), David Rötzer (Associate, Finance) and Patrick Mayrhuber (Associate, Finance).

Binder Grösswang  advised together with Allen & Overy LLP as international Lead Counsel.

Other involved advisors (amongst others):

Steinhoff: Fellner Wratzfeld & Partner and WolfTheiss (both Austria), Linklaters LLP (International Lead Counsel)

Creditor Secondary Committee: DORDA Rechtsanwälte GmbH (Austria) and Latham & Watkins LLP (International Lead Counsel)

Convertible Bondholder: Eisenberger & Herzog Rechtsanwälte GmbH (Austria) and Kirkland & Ellis LLP (International Lead Counsel)