Casino shares are suspended, and news on the debt deal is expected soon. In anticipation of an announcement, shares of French retailer Casino (CASP.PA) were frozen on Wednesday, fueling rumors that a final debt restructuring agreement with creditors, spearheaded by Czech billionaire Daniel Kretinsky to prevent bankruptcy, may be close at hand.
In July, the sixth-largest retailer in France secured a deal in principle to restructure its $6.7 billion ($6.4 billion) debt load with a group led by Kretinsky’s business EPGC, including Casino’s top creditor Attestor and second-largest shareholder Fimalac.
The transaction, which significantly dilutes shareholders, would terminate Jean-Charles Naouri’s 30-year reign as CEO and controlling shareholder of Casino. Naouri, 74, controls a Casino through his publicly traded holding company Rallye.
According to the timeline announced in July, the consortium planned to reach a legally binding lock-up agreement by no later than September 30 and finish all restructuring by the first quarter of 2024.
The lock-up agreement date was extended by Casino on September 29 to October 3, which raised hopes that an announcement would be made this week.
On Wednesday, the firm requested a one-day suspension of trading Casino shares, which have lost 88% of their value this year. The corporation provided no other comments.
According to the July deal, Casino would get 1.2 billion euros in new funding, and its 6.4 billion euros in debt would be restructured. In the end, Kretinsky’s consortium would hold between 50.4% and 53% of the shares of Casino.
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