Casino Guichard-Perrachon Reaches New Agreement in Principle With Creditors
By Adria Calatayud
Casino Guichard-Perrachon has reached a new agreement in principle with a group of creditors, while mediators in so-called conciliation proceedings with debt holders applied for an extension of the process until next month.
The French retailer said late Monday that it struck a deal in principle with a group that represents a majority of holders of bonds issued by Quatrim, which owns an entity that houses the group's properties. Under the agreement, maturity on senior secured notes of 553 million euros ($591.2 million) issued by Quatrim has been extended to January 2027 from January 2024, with an option to extend it by one additional year, Casino said.
The agreement also contemplates a ring-fencing of Quatrim's assets--valued at around EUR752 million as of the end of 2022--, resulting in the senior secured notes having limited ability to claim Casino's assets, the company said.
Casino said the maturity extension will give time to its property entity to launch an asset-sale plan and allow Quatrim to reduce debt.
The deal is the latest step in a monthslong process during which Casino, which has struggled with heavy debts and a sliding market share in its home country, is seeking a financial restructuring to keep its operations running.
Casino in July reached another ageement in principle with a group formed by EP Global Commerce, Fimalac and Attestor--a consortium led by Czech billionaire Daniel Kretinsky that also includes billionaire financier Marc Ladreit de Lacharriere--and some creditors that include French banks.
Moreover, Casino said conciliators filed an application with the Paris Commercial Court for an extension until Oct. 25 of the debt-restructuring talks between the company and its creditors that began in June.
Write to Adria Calatayud at adria.calatayud@dowjones.com
(END) Dow Jones Newswires
September 19, 2023 02:35 ET (06:35 GMT)
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