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- Steinhoff has received more support for its R25 billion bid to settle lawsuits stemming from its share price plunge.
- At a meeting in the Netherlands on Wednesday, all members of a specially constituted committee gave the plan their support.
- Steinhoff, which is also facing a separate liquidation bid in court, needs one last vote to go its way for the plan to proceed.
Retailer Steinhoff has cleared the second hurdle of its ambitious plan to settle hundreds of lawsuits stemming from the crash in its share price by paying out billions of rands in compensation.
On Wednesday, at a meeting in the Netherlands, every member of a 15-person "committee of representatives" voted to support the settlement proposal, according to Steinhoff. Steinhoff's holding company has since 2015 been domiciled in the Netherlands.
This vote will now need to be approved by the District Court of Amsterdam on 16 September.
This follows on from a vote on Monday, where two classes of claimants in South Africa also voted to support the plan.
The retailer has said the settlement is a critical part of its broader turnaround plan and it may need to be liquidated if the process falls through.
Its total offer stands at €1.426 billion (around R25 billion), which will be split up between three classes of claimants. Insurance groups underwriting its liability cover and its former auditor, Deloitte, have both undertaken to add €78 million to the "bucket".
As part of the proposed deal, litigants will receive a proportion of their verified claims, according to a term sheet drawn up by Steinhoff. In return, they will have to drop all current and future legal challenges against the retailer.
Two down, more to come
While Wednesday's vote went Steinhoff's way, it is still too early to say whether the furniture conglomerate's R25 billion settlement plan will be successful.
The third and final vote - by contractual claimants in the South African leg of the proceedings which is running parallel to the Dutch process - is set to take place on Thursday. Steinhoff will again need to receive the support of 75% of votes for the process to continue.
The retailer is also set to face a separate liquidation challenge in the Western Cape High Court, due to start on Thursday.
The winding-up bid is being brought by the former owners of Tekkie Town, who have argued they were "duped" into swapping their shares in a "highly profitable, cash-generative" shoe retailer for stock in Steinhoff.
Steinhoff, meanwhile, has denied it is commercially insolvent.
