Czech businessman Kretinsky tightens tie with France's Casino in Rallye deal

Finatis SA

02/03/2020 12:13

PARIS, March 2 (Reuters) - Czech businessman Daniel
Kretinsky has tightened his ties with French retailer Casino
 CASP.PA  by refinancing derivatives deals struck by its
indebted parent Rallye  GENC.PA .
    Kretinsky, already the owner of 5.64% of Casino's capital,
will provide up to 233 million euros ($259 million) through his
EP Investment vehicle to refund derivatives deals Rallye had
sealed with financial institutions, Rallye said in a statement.
    Monday's refinancing deal is backed by a fiduciary trust,
which gives Kretinsky a pledge over approximately 9.5 million
Casino shares, or a 8.73% of its share capital.
    These Casino shares are equivalent to those that were
pledged to the parties to the derivatives transactions.
    Casino Chief Executive and controlling shareholder
Jean-Charles Naouri has been trying to ease the company's debts
and those of Rallye, which was placed under protection from
creditors in May 2019, via asset sales and refinancings.
    The Rallye derivatives transactions were not covered by the
Rallye safeguard plan that was approved by the Paris Commercial
Court on Feb 28.
     They were subject to specific agreements signed in November
2019, which called for repayments to the financial institutions
in June 30, 2021 and in Dec 31, 2022 at the latest.
    As a result of the Kretinsky deal, the derivatives will be
reimbursed under the same terms and timetable as those offered
to secured Rallye creditor banks under a safeguard plan that is
up to 85% in February 2023 and the remainder in February 2024. 
($1 = 0.9000 euros)

 (Reporting by Dominique Vidalon;
Editing by Alexander Smith)
 ((dominique.vidalon@thomsonreuters.com; +33149495432; Reuters
Messaging: dominique.vidalon.reuters.com@reuters.net))