Steinhoff Asia business secures funding, takes on new name

Steinhoff’s Asian business has secured new funding to refinance some debts and rebranded under the name Greenlit, the company said on Thursday.

Parent company Steinhoff is trying to recover from an accounting scandal that has wiped more than 90 percent off its market value since December.

The Asian business, Steinhoff Asia Pacific Group, has adopted Greenlit Brands as its new name, Steinhoff said in a statement. The business has secured 256 million Australian dollars ($185.09 million) in credit facilities to refinance and extend the maturity of its debt, Steinhoff said.

As part of the deal, which extends the maturity of the Greenlit Brands debt to October 2020, Steinhoff’s European business would be released as guarantor of Greenlit Brands’ borrowings.

With 10,000 employees in Australia and New Zealand, Greenlit operates local furniture retailers, including Freedom and Fantastic Furniture.

It contributes roughly 7 percent to the group sales, according the latest financial disclosure for the nine-months to the end of June.