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Holdings behind French retailer Casino open procedure to avoid default

LUS QuestionsCategory: DivorceHoldings behind French retailer Casino open procedure to avoid default
Sommer Fontenot asked 1 year ago

By Mathieu Rosemain and Chiara Elisei LONDON/PARIS, April 25 (Reuters) – The cascade of holdings behind Casino 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 planet88 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 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)