Debt-laden retailer Casino enters court-backed negotiations with creditors (updated)

Teract SA

26/05/2023 06:55

(Adds details, Les Mousquetaires statement)
    By Dominique Vidalon
       PARIS, May 26 (Reuters) - French retailer Casino
 CASP.PA  said on Friday it was officially starting court-backed
negotiations with its creditors  as the heavily indebted group
seeks a way out of its financial woes while weighing two tie-up
bids from wealthy investors.
    Casino, led and controlled by veteran entrepreneur
Jean-Charles Naouri and owner of the Franprix and Monoprix
chain, said the Paris Commercial Court had decided to open a
conciliation procedure for the benefit of Casino and certain of
its subsidiaries for an initial period of four months, which may
be extended by one month.
    The talks will be overseen by court-appointed officials
Aurelia Perdereau and Marc Senechal.
    "The conciliation procedure only concerns the financial debt
of Casino Guichard-Perrachon SA and certain of its subsidiaries
and will have no impact on the group's relations with its
operational partners (in particular its suppliers) and its
employees," the statement said.
        Casino had a consolidated net debt of 6.4 billion euros 
($7.05 billion) at the end of last year. It faces 3 billion
euros' worth of debt repayments in the next two years and the
holding company through which Naouri controls the company is
also heavily indebted.
    The decision to start conciliation proceedings with
creditors, which include major French banks BNP Paribas and
Credit Agricole as well as international hedge funds, comes as
Casino considers tie-up proposals from Czech billionaire Daniel
Kretinsky and from smaller retailer Teract  TRACT.PA .
    "Casino considers that the conciliation procedure will
provide the best possible framework for discussions with its
creditors and potential investors," Casino said in a statement.
        It said its board had set up an ad hoc committee of
independent directors and members of the Audit Committee to
review the two tie-up proposals and monitor the conciliation
procedures.
  
        Casino said in a separate statement it had signed a
protocol of intent that extends the scope of its partnerships
with Groupement Les Mousquetaires, owner of supermarket chain
Intermarche, which in April joined the Teract tie-up proposal.
  
        Casino shares were suspended on May 23, pending the
release of the statement. They will resume trading this Friday.

($1 = 0.9084 euros)

 (Reporting by Dominique Vidalon. Editing by Gerry Doyle)
 ((dominique.vidalon@thomsonreuters.com; +33149495432; Reuters
Messaging: dominique.vidalon.reuters.com@reuters.net))