File photo: Steinhoff International
Embattled South African retailer, Steinhoff International, has proposed to pay $1bn (£770m) to settle legal claims which stem from its 2017 accounting irregularities scandal.
"The proposed settlement terms being announced today are the culmination of 12 months of intensive effort," CEO Louis du Preez said in a statement.
Steinhoff is facing over 90 claims from different countries amounting to over $10bn.
While the proposed settlement is only a fraction of what is being sought, Mr du Preez has called on claimants to accept the deal.
"Although there is no certainty yet that we will be able to conclude this settlement, in our view these terms are firmly in the best interests of all stakeholders. We urge all claimants to engage positively with us and support our proposal to resolve the outstanding legacy claims," he said.
The once blue-chip company’s problems started in December 2017 when holes in its accounts were revealed which resulted in a precipitous decline in its share price and the abrupt resignation of its then CEO Markus Jooste.
The accounting fraud is estimated at $7bn.
The 50-year-old company could face liquidation should it be forced to pay the legal claims against it in full.
Its proposed deal is still subject to approval by creditors, regulators and claimants.
