Linklaters advises Steinhoff International Holdings on global litigation settlement

Linklaters has advised Steinhoff International Holdings N.V. (SIHNV) and its subsidiaries (Steinhoff) on its successful global settlement of substantial contingent liabilities that arose from accounting irregularities first announced by Steinhoff in December 2017. 

The settled liabilities consist of claims for damages in the billions of euros brought against Steinhoff and certain aspects of its related parties in connection with the accounting irregularities. The litigants included several class action firms on behalf of institutions and individuals that had acquired Steinhoff shares in the public markets and ‘vendor claimants’ that had sold their businesses to Steinhoff in exchange for shares.

Multiple proceedings had been commenced in the courts of the Netherlands, South Africa and Germany, and certain claimants also filed a liquidation petition against SIHNV in South Africa. Steinhoff contested all such proceedings, and no adverse judgments on liability had been obtained by the time of the global settlement.

Linklaters represented SIHNV in its litigation in the Dutch and German courts, and in the English court on a contested scheme of arrangement undertaken for the purpose of obtaining financial creditor consent to the global settlement, and throughout the settlement.

The cross-border Linklaters team was led by restructuring and insolvency partners Richard Bussell and James Douglas (London) and Paul Kuipers (Amsterdam), alongside the firm’s Dispute Resolution team, which was led by partners Daniella Strik (Amsterdam), Kerstin Wilhelm (Munich) and Rory Conway (London), with associate Gregory Wloch (London). South African legal advice was provided by Werksmans Attorneys. 

Further details of the settlement can be found here.