Casino Guichard-Perrachon Fundraising Approved


Casino Guichard-Perrachon has received approval from the Paris Commercial Court for its plan to raise funds through a consortium led by Czech billionaire Daniel Kretinsky. This development brings the embattled French supermarket owner one step closer to reducing its debt pile.

Restructuring Oversight and Timeline

The court has appointed three domestic firms to oversee Casino’s restructuring process, which the company aims to complete by March 27. This timeline is contingent on the absence of appeals from court-appointed administrators, workers’ representatives, or other stakeholders.

U.S. Bankruptcy Filing

Less than two weeks ago, Casino filed for chapter 15 bankruptcy in the Bankruptcy Court of the Southern District of New York to seek recognition for its financial restructuring in the U.S. legal system. The group cited some debt instruments governed by the law of the State of New York.

Challenges and Negotiations

With over 11,500 stores in France and Latin America, Casino has been facing challenges such as high debt levels and declining market share in its home country. To address these issues, the group engaged in discussions with creditors to secure the necessary liquidity for ongoing operations.

Casino Group Announces Capital Restructuring Deal

In a move to bolster its financial standing, the Casino Group forged a significant agreement with a consortium spearheaded by Kretinsky, banks, and other creditors. This arrangement paves the way for an equity injection and a substantial reduction in debt totaling 6.1 billion euros ($6.62 billion).

Reinforcing the Capital Base

The consortium’s proposal entails an infusion of EUR1.20 billion in fresh equity into the Casino Group, earmarking EUR275 million for both creditors and existing shareholders. Furthermore, the deal encompasses the conversion of debt into equity.

Casino emphasized the forthcoming implications for current shareholders, acknowledging the sizable dilution that will come to pass. Following the prescribed share capital increases, existing shareholders are poised to retain less than 0.3% of Casino’s share capital.

Reshaping Ownership

Rallye Group, the holding company with a 51.7% stake in Casino, will see its ownership dwindle to approximately 0.1% post-restructuring. Control of the group will transition to the Kretinsky-led consortium, boasting a controlling interest of 53.7%.

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