The Nomination Committee strongly supports the appointment of Paul Copley and David Pauker. Provision has also been made in the new finance documents by the Group’s European external financial creditors that underscore their support for their appointment. In particular, pursuant to the terms of the relevant Restructuring Documents, should the general meeting not resolve to appoint Paul Copley and David Pauker to the Supervisory Board, the cost of the debt reconstituted pursuant to the Debt Restructuring will increase. Specifically: (i) the interest rate applicable to the reconstituted debt of Steinhoff Europe AG and Steinhoff Finance Holding GmbH would be increased by 5 per cent. per annum (from between 7.875% and 10.75% PIK per annum (as applicable) to between 12.875% and 15.75% PIK per annum (as applicable)), with such increased interest rates also retrospectively applicable for the period that is specified in each relevant Restructuring Document; and (ii) the cap on recoveries against the Company will be increased from 5 per cent. per annum to 10 per cent. per annum in respect to the SEAG Contingent Payment Undertaking (as defined in the CVAs), and a cap of 10 per cent. per annum will be instated on recoveries against the Company in respect to the 2021/2022 Contingent Payment Undertaking, the 2023 Contingent Payment Undertaking and the SIHPL Contingent Payment Undertaking (as |