2023-06-08 04:57:04
The Casino group has discreetly revealed more than a billion euros of additional debt when it is already over-indebted. He urgently uses lines of credit for his cash flow.
Casino recognizes that its financial health has been worsening for a year. The group initiated two weeks ago a conciliation procedure aimed at renegotiating its debt of 6.4 billion euros with its creditors. Since then, tongues have been loosened on the real financial situation of the distributor. And investors, partners and potential buyers point to Casino’s hidden debt.
A month ago, the group published in its accounts for the first quarter of 2023 a new debt, unknown so far. He revealed that he borrowed 1.23 billion euros more in 2022 from his banks. In the first quarter, this amount even rose to 1.65 billion euros.
These loans actually consist of “drawing down” lines of credit. In concrete terms, this is the provision of credit to be used in the event of an emergency to make up for variations in cash. At Casino, it is above all a question of paying the suppliers. Contacted, the group did not wish to answer us.
The situation has worsened since the beginning of the year
Except that by shedding light on these new loans, Casino has revived the concerns of its partners, investors, creditors and buyers in the process of negotiating its rescue.
At the beginning of March, when publishing its 2022 annual results, it had only specified that it had “2 billion euros of undrawn confirmed credit lines”, according to its press release. However, two months later, he admits having used “on average 1.23 billion euros” out of these 2 billion euros, and even up to “1.73 billion euros at most”, adds the press release, during the year 2022.
The CEO of Casino, Jean-Charles Naouri, “was obliged to display this debt to the markets”, recognizes an actor in the file. “But everyone knew about this situation, it was an open secret.”
Will this “hidden debt” require more money to be injected into Casino? “It doesn’t change anything because a large part of the debt will be cancelled,” said a source close to one of the buyers.
Expert reports expected on Monday
Other investors are much more worried about Casino’s financial situation. “If the group draws on its security lines of credit, it is because it is struggling to pay its suppliers,” said a source close to a creditor. Many fear that the group will be placed in safeguard proceedings, or even in receivership at the end of its conciliation.
All the stakeholders await next Monday, June 12, the presentation of the expert reports of Accuracy, carried out on behalf of Casino, and of PwC, requested by the creditors. They are waiting for the truth of the figures on cash consumption and the level of debt to know the real capital needs of Casino.
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