Subscribe Login
DE4CC0DE-5FC3-4494-BCBF-4D50B00366B5
Retail

Casino Shareholders, Creditors Clear Accelerated Protection Plan

By Reuters
Share this article
Casino Shareholders, Creditors Clear Accelerated Protection Plan

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.

ADVERTISEMENT

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

Get the week's top grocery retail news

The most important stories from European grocery retail direct to your inbox every Thursday

Processing your request...

Thanks! please check your email to confirm your subscription.

By signing up you are agreeing to our terms & conditions and privacy policy. You can unsubscribe at any time.