Steinhoff - One creditor group benefits

All,

Following the details of the proposed Grand Settlement, please refer to our revised entity priority model here.

In particular one set of creditors has been benefiting from the progress made on claims so far. The position of the 21/22s or Luxfinco 1 A1 loan will significantly improve if the settlement is struck as is. Litigation settlements proposed at the SIHPL level are not much more than E0.5bn. While in future those are proposed to have priority over SIHPL assets, with further (relatively minor) second ranking claims also in place, the third ranking SPU claims, originating from guarantees extended to the 21 and 22 notes at SFHG, still stand to recover more cash / value on their own, than the current market quote - i.e. the dips into Luxfinco 1 and SIHNV (minor recovery) apparently travel for free.

We therefore see the recovery of these bonds closer to 70c/E now - provided the settlement can be achieved.

Happy to discuss,

Wolfgang