News update: Steinhoff’s insurers to pay $93 million

 News update: Steinhoff’s insurers to pay $93 million

News update.

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Steinhoff  has reached an agreement with certain insurance companies underwriting the group’s directors and officers insurance policy to contribute up to 78.1 million euros ($93 million) to help settle claims against it.

The announcement sent Steinhoff’s Johannesburg-listed shares up 4.19%, while its primary Frankfurt-listed shares jumped by 7.85%.

The combined claims of those who have quantified their alleged damages are in excess of 136 billion rand ($9 billion) after an accounting fraud in December 2017 resulted in a dramatic share price plunge of Steinhoff.

As part of the agreement, also with Steinhoff’s certain former directors and officers (D&Os) such as founder Bruno Steinhoff and former chair Christo Wiese, the insurers will offer an amount of up to 55.5 million euros to market-purchase claimants “in exchange for certain waivers and releases”.

The furniture and clothing retailer said 15 million euros would be paid to certain contractual claimants.

The agreement with directors and officers excludes former CEO Markus Jooste, former CFO Ben La Grange, former secretary Stehan Grobler and the group’s ex-Steinhoff Europe director Siegmar Schmidt, it said.

Steinhoff said it maintains the right to institute or continue claims against the four for their alleged involvement in the fraud and against certain legal entities and other individuals said to have received payments by the group’s companies.

“Deloitte, the D&O insurers and the settling D&Os do not in any way admit liability for the losses incurred by Steinhoff and its stakeholders as a result of the accounting irregularities at Steinhoff,” the company said.

Chris Louw

Featured Financial Writer for SA Shares - Read more about Chris's Bio -

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