This week, scandal-besmirched retail group Steinhoff passed the first major hurdle on the way to what would be a world first: rescuing a company crippled by what seemed to be an inescapably fatal fraud.
Of the other multinationals in the same position, none survived. Overseas, Enron ended up bankrupt within months of its shenanigans emerging, while Wirecard was declared insolvent last year, weeks after it emerged that its financials had been falsified. Here in SA, gym operator LeisureNet collapsed promptly after fraud emerged, as did Masterbond.
Yet this week, Steinhoffs financial creditors and market purchase claimants (including ordinary investors) voted to accept a R25bn “settlement” by the company, which entitles them to a percentag…
Read the full article at: https://www.businesslive.co.za/fm/opinion/editorial/2021-09-09-editorial-a-new-sa-fraud-first/
