fwp advised Steinhoff Group on the agreement negotiated with the creditors about the principle of restructuring.

Over the past few months, fwp intensively supported Steinhoff Group in its efforts to conclude an agreement with its creditors regarding the principle of a comprehensive restructuring concept. From the perspective of the Austrian holding companies alone, the total amount of liabilities concerned is EUR 7.5 billion.

As disclosed by Steinhoff Group on ad-hoc basis on 20 July 2018, an important breakthrough was achieved by reaching agreement with the creditors on the terms of a lock-up agreement. The lock-up agreement, which includes both the term sheet for the restructuring and the detailed schedule for the implementation of the restructuring measures, follows a support period structured by fwp.

The contractual documentation is scheduled to be finalised and implemented in concrete terms over the next few months.

“Following long days and nights of negotiations with the Management of Steinhoff Group, we have now achieved an important milestone for the restructuring of the Group. This mandate is a particular challenge, given the multi-layered corporate structure of Steinhoff Group on the one hand and a complex international web of creditors on the other. The reorganisation concept developed by us now provides a realistic chance for successfully implementing the restructuring and satisfying all sides”, says fwp partner Markus Fellner.

Having more than 12,000 locations in 30 countries and some 112,000 employees worldwide, Steinhoff is among the largest global furniture groups.

Thanks to fwp’s vast experience, the law firm advised on all important restructuring cases related to Austria in the past few years. The Steinhoff mandate opened up a completely new dimension in this practice area, though.

The core team or fwp comprised fwp partners Markus Fellner (lead), Paul Luiki and Florian Kranebitter, attorney-at-law Elisabeth Fischer-Schwarz and associate Julian Zarre.

Other legal counsel: Linklaters LLP London (Richard Bussell for Steinhoff-International), and, on the creditors’ side, Allen & Overy LLP, Latham & Watkins LLP, Kirkland & Ellis LLP, among others.