Steinhoff - Slow

All,

Please refer to our unchanged analysis here.

The Amsterdam District Court has today approved the opening of the “suspension of payments” procedure to approve the Grand Settlement (was attached to the opening request - so approved in principle subject to voting). That’s the good news. However, voting is now not planned until June 15th as SIHPL will first have to launch its own statutory compromise process under South African law.

This is slow. We admittedly had expected that to be a much tighter affair and to be concluded by March. It is possible that the courts are also affected by the pandemic.

We will ask the advisors if they think it clever to kick off an IPO of Pepco-Poundland, the most valuable asset, before June (might rekindle tensions over recoveries?). If not, the schedule to November is beginning to look a little tight and Steinhoff may have to alter the sequence of events - not a problem, but would be good to know.

As previously alluded to, once the grand settlement is done (and assuming the Pepco-Poundland IPO has not yet been launched) we would consider switching out of the old 21/22s into the old 23s as those are the fulcrum for the European assets. We may have to reconsider the timing as per the paragraph above.

Here to discuss,

Wolfgang

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