Groupe Casino shareholders and creditors have given the green light to a plan led by Czech billionaire Daniel Kretinsky to bail out the debt-ridden French retailer.
Sixteen out of 17 classes the shareholder and creditors were divided into to cast their votes – electronically and at a meeting held on Thursday – approved a draft protection procedure Casino entered into in October, Casino said in a statement, in which it noted 'very strong support' for the restructuring of the business.
The procedure allows its future leadership to finalise a deal to restructure the group's debt and revive its business,
In December 2023, it was extended by two months to February 25.
Shareholder Vote
Casino shareholders (class 7) voted 98.87% in favour of the procedure, while it enjoyed far less success among EMTN, high yield and treasury bonds creditors (class 3), who voted 68.55% in favour, and creditors holding perpetual subordinated notes (class 6) of whom 75.62% voiced their approval.
A new leadership team formed around Kretinsky is set later this year to take control of France's seventh-largest supermarket group by market share, which was brought to the verge of default after years of debt-fuelled acquisitions and recent losses in market share to rivals.
Restructuring Deal
Current shareholders will be massively diluted under a restructuring deal which will end the 30-year reign of 74-year-old Jean-Charles Naouri, who controls Casino through his listed holding company Rallye
Kretinsky's consortium will own and control 53.7% of Casino's share capital under the deal, which calls for €1.2 billion of new money to be injected into Casino, as well as a 6.1 billion euro reduction of Casino's debt.
Additional reporting by ESM
