Holdings behind French retailer Casino open procedure to avoid default

Teract SA

25/04/2023 20:34

By Mathieu Rosemain and Chiara  Elisei
       LONDON/PARIS, April 25 (Reuters) - The cascade of
holdings behind Casino  CASP.PA  started a procedure on Tuesday
that could lead to a restructuring of their debt to avoid
default, as the heavily-indebted French retailer strives to find
a way out of its financial woes. 
    The move comes a day after news that Casino, headed and
controlled by veteran entrepreneur Jean-Charles Naouri, said it
considered opening a conciliatory procedure with the group's
creditors amid competing combination offers for parts of the
whole of Casino, which had consolidated net debt of 6.4 billion
euros  $7.02 billion) at the end of 2022.
    This "would constitute an event of default" under the terms
Casino's controlling holding Rallye  GENC.PA  secured part of
its debts -- those guaranteed by 11.7% of Casino's capital, the
holding said in a statement after market close. 
    As a result, Rallye, which had a 3.1 billion-euro gross
financial debt at end 2022, said it had asked and obtained the
start of a so-called "ad hoc" mandate proceedings with a French
commercial court. 
    The procedure, set to initially last three months, is aimed
at initiating talks between Rallye and its creditors holding
securitised debt.
    The out-of court process is aimed at facilitating
negotiations between a company and its creditors. It can be
extended beyond its initial period if needed.
    Under the process, Rallye will seek relief or waivers of
events of default from creditors, it said.  
    It will also review with the creditors options to tweak its
own safeguard plan, depending on the decisions that may be taken
by Casino.
 ($1 = 0.9118 euro)

($1 = 0.9114 euros)

 (Reporting by Chiara Elisei and Mathieu Rosemain ; editing by
Jonathan Oatis)
 ((Chiara.Elisei@thomsonreuters.com;))