Debt-laden retailer Casino enters court-backed negotiations with creditors

Teract SA

26/05/2023 06:02

PARIS, May 26 (Reuters) - French retailer Casino
 CASP.PA  said on Friday it was officially starting court-backed
negotiations with its creditors  as the heavily-indebted group
seeks a way out of its financial woes while weighing two tie-up
bids from wealthy investors.
    Casino, headed and controlled by veteran entrepreneur
Jean-Charles Naouri and owner of the Franprix and Monoprix
chain, said the Paris Commercial Court had decided to open a
conciliation procedure for the benefit of Casino and certain of
its subsidiaries for an initial period of four months, which may
be extended by one month.
    The talks will be overseen by court-appointed officials
Aurelia Perdereau and Marc Senechal.
    Casino had a consolidated net debt of 6.4 billion euros 
($7.05 billion) at the end of last year. It faces 3 billion
euros of debt repayments in the next two years and the holding
company through which Naouri controls the company is also
heavily indebted.
     The decision to start conciliation proceedings with
creditors, which include major French banks BNP Paribas and
Credit Agricole as well as international hedge funds, comes as
Casino is considering tie-up proposals from Czech billionaire
Daniel Kretinsky and from smaller retailer Teract  TRACT.PA .
    Casino shares were suspended on May 23, pending the release
of the statement. They will resume trading this Friday.

($1 = 0.9084 euros)

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