Casino parent Rallye extends observation period with creditors

Finatis SA

25/11/2019 20:24

PARIS, Nov 25 (Reuters) - Debt-burdened Rallye  GENC.PA  and
other shareholders of French retailer Casino  CASP.PA  agreed
with bankers to extend by six months an observation period of
proceedings with creditors and confirmed their objective to have
a draft rescue plan cleared by early 2020, Rallye said on
Monday.
    Casino Chairman and Chief Executive Officer Jean-Charles
Naouri in May had placed parent companies Rallye, Finatis and
Fonciere Euris under protection from creditors in a bid to save
the group from collapse.
    In September Rallye, Fonciere Euris, Finatis and Euris had
said that the draft rescue plan, drawn up with the assistance of
judicial administrators, involved repayment over a 10-year
period of all liabilities.
    Casino's net debt stood at 2.71 billion euros at the end of
2018, and Rallye's stood at 2.90 billion euros.
    Casino has been struggling in France, where a price war
among supermarkets has dented retailers' profit margins.
    While Casino itself was not placed under bankruptcy
protection, it was hit with downgrades that left its credit
rating deeper in junk territory.
    Earlier this month, Casino completed a 3.8 billion
refinancing package.  urn:newsml:reuters.com:*:nASN0000C6

 (Reporting by Dominique Vidalon, Writing by Benoit Van
Overstraeten; Editing by Grant McCool)
 ((dominique.vidalon@thomsonreuters.com; +33149495432; Reuters
Messaging: dominique.vidalon.reuters.com@reuters.net))