2023-07-03 19:35:00
Monday evening at 9 p.m., no press release had been published by the group’s management. During the day, the title dropped 3.34% on the stock market, its share now worth 3.93 euros.
Recapitalization, fear of a cut … The fate of the Saint-Etienne group, 200,000 employees worldwide, a quarter of whom in France, and its Monoprix, Franprix or Cdiscount brands will not be sealed for several weeks, the time to examine the financial arguments presented.
In the meantime, the distributor’s creditors had been asked not to claim payment of the sums due during the conciliation, which can last until the end of October at the latest. But some refused.
The group had therefore announced Monday morning that it would “request from the President of the Commercial Court, in the coming days, the application of grace periods”.
Members of the CGT gathered in front of the Casino headquarters in Saint-Etienne, June 22, 2023 AFP/JEFF PACHOUD.
These deadlines would suspend the payments, the time that the renegotiation of the debts took place, within the framework of the procedure of conciliation opened at the end of May and which can last until the end of October. At present, the group’s net debt amounts to a total of 6.4 billion euros and that of its parent company Rallye to around 3 billion euros.
In addition, Casino announced Monday that it had not respected the obligation on June 30 to have a gross debt that does not exceed 3.5 times its gross operating surplus.
Failure to comply with this obligation is synonymous with default of payment for the group. The creditors concerned were therefore asked not to ask for reimbursement during the conciliation. As of Monday, “these lenders have not responded to the request,” Casino said.
Target end of July
The group hopes “to finalize an agreement in principle on the terms of the financial restructuring by July 27”, he had previously indicated.
Czech businessman Daniel Kretinsky in Paris, January 22, 2020 AFP/Archives / JOEL SAGET.
He wants a massive conversion of his debt into capital, covering more than 3 billion euros of unsecured debt and between 1 billion and 1.5 billion euros of secured debt. The holders of these claims (large banks, funds, institutions, etc.) would thus become Casino shareholders, instead of recovering their money.
The group also wants to be able to at least preserve the activity in France.
He hopes for a capital increase “of at least 900 million euros”, to have the “adequate liquidity” to carry out his strategic plan 2023-25.
Several suitors, who had until Monday to formalize their offers of equity contributions, are already known and several billionaires have expressed their interest publicly.
The Czech Daniel Kretinsky, already a Casino shareholder with more than 10% and who wishes to take control, is ready to inject 750 million euros. Provided that the debt is reduced, with a capital increase of more than one billion euros to which would subscribe up to 150 million euros Marc Ladreit de Lacharrière (Fimalac), also a shareholder (12% of the capital) and close to CEO Naouri.
French businessmen Xavier Niel, Moez-Alexandre Zouari and Matthieu Pigasse in Paris, March 31, 2022 AFP/Archives / BERTRAND GUAY.
For their part, the trio of businessmen Xavier Niel (Free), Matthieu Pigasse and Moez-Alexandre Zouari said they were potentially ready to invest up to 300 million euros as part of “strengthening equity (together with other players) of up to €1.1 billion”.
In the retail sector, Intermarché could also help recapitalize its competitor while at least one other player is looking into the matter.
The unions, which have launched a right of economic alert procedure to find out more about the situation of the group, are particularly concerned about a sale by cutting and a transfer of additional stores to Intermarché (beyond the 119 already planned), a group of independents where social policy depends on each store owner.
Whatever the score played, a change of era is looming: Rallye, the parent company, “will lose control of Casino”, the distributor had indicated on Wednesday, thus ending the stranglehold of the historic boss Jean-Charles Naouri.
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