Steinhoff pushes back liquidation in South Africa

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Business Day reporter Katharine Child says the case is tricky because Steinhoff is a multinational company that is in some sort of bankruptcy protection in the Netherlands, leading them to claim that the South African courts should not intervene.

Steinhoff has said in legal documents that if a South African court tries to liquidate him, it would undermine the Dutch court process and could have repercussions far beyond itself and undermine mutual respect between European and South courts. Africans, who sometimes collaborate on cross-border issues.

Steinhoff’s appeal to the Constitutional Court comes after High Court Judge Hayley Slingers ruled on the liquidation case of Steinhoff, which owns SA Pepkor and European retailer Pepco, can be heard in Cape Town even then that the company is registered in the Netherlands. Steinhoff is under the supervision of the Dutch courts in the Netherlands as part of a settlement process which is a form of bankruptcy protection.

Business day journalist Katharine Child has more.

I think Steinhoff is somewhat premature, so what they’ve done is argue that the case against them shouldn’t happen in South Africa.

Katharine Child, journalist – Business Day

It’s pretty complicated because Steinhoff is multinational and is under some form of bankruptcy protection in the Netherlands, so they think the South African courts shouldn’t interfere, but the decision to pursue the case in South Africa. South has not yet started.

Katharine Child, journalist – Business Day

RELATED: Tekkie Town Founders Fight To Get Steinhoff’s Business Back

The judge made that decision and said yes it could go ahead here but gave no reason why they should be detained in South Africa which we expect next week.

Katharine Child, journalist – Business Day

Steinhoff said: You have all these claims against us from people who bought or sold their business for our stock and lost everything when the stock price fell. We want to put an end to all these disputes; they have R184 billion in claims against them, and that came with a settlement; it is different from the liquidation effort; the regulation must be voted on, and the Netherlands and South Africa must accept it. It has already been accepted by the Dutch court and is halfway there.

Katharine Child, journalist – Business Day

Listen to the full interview below …


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