French distributor Casino announced on Monday, September 18 that it has reached an agreement in principle with a new group of creditors. However, the latter was not affected by the first agreement announced in July to restructure its colossal debt, which stood at 6.4 billion euros at the end of 2022.
In its press release, the group also said it had asked the Paris Commercial Court to extend the conciliation period until October 25, related to the restructuring of its debt. This reconciliation period opened on June 2.
Creditors affected by this new agreement are principally the majority bondholders of Quatrim, the entity that owns the casino real estate.
The agreement provides that 100% of the proceeds from the disposal of assets owned by Quatrim and its subsidiaries, as well as a portion of the proceeds from the disposal of GreenYellow and other assets of the group, will be allocated to repay these creditors.
In total, proceeds from disposals and cumulative guarantees are expected to repay €946 million of secured debt to these holders, with a principal amount of €553 million.
A contribution of 1.2 billion euros in new money
The maturity date of these bonds, i.e. their maturity date, has also been extended to January 15, 2027, compared to the previous year of 2024, in order to Implement a plan to sell assets and reduce Quatrim’s debt.Defines a group.
Casino adds “This agreement is subject in principle to the completion of other restructuring operations announced by the group on 27 July 2023.”.
At the end of July, the main creditors of the group fulfilled their obligations “take and take any action or action reasonably necessary” for the completion of the restructuring of the casino and, thus, the offer to buy the Czech Daniel Kretinsky and his allies, the billionaire Mark Ladreit de Lacharière and the British fund Attestor.
The offer involves providing €1.2 billion in new money, as well as reducing the group’s debt by nearly €5 billion. It also plans to sell its casino operations in Latin America – particularly Brazil – which employs three-quarters of the group’s employees.
Source: Le Monde
Ashley Fitzgerald is a financial whiz and a writer at Run Down Bulletin. With a passion for all things economy, she provides insightful and thought-provoking coverage of the latest economic trends and events.
