Rallye announces filing an appeal against the fine imposed by the AMF

2023-09-18 18:29:00

Rallye, Casino’s parent company, announced this Monday, September 18, in a press release, that it had filed an appeal against the decision of the Financial Markets Authority (AMF). Last week, the latter fined him 25 million euros. The French stock market policeman in fact accuses him of having “ disseminated false or misleading information that could “. The general director of Rallye Franck Hattab is also subject to a fine of 1 million euros.

The Financial Markets Authority imposes a fine of 26 million euros on Casino and its general director

Rally does not “ can’t pay the fine » had already indicated in July the company’s lawyer Didier Malka to AFP, after specifying during the hearing that it only counted as wealth ” 13 million euros in cash », just enough to survive until the end of 2024.

A class “very volatile”

In detail, the AMF college – its prosecuting authority which put together the case – criticized Rallye and Franck Hattab for having broadcast on 11 occasions, between March 8, 2018 and May 15, 2019, “ false or misleading information about the financial situation of Rallye » in 14 communication media, which could have artificially increased the Casino stock price.

This information, which concerned Rallye’s 2017 annual results, its results for the first half of 2018 and its 2018 annual results “ gave investors a more favorable image of its liquidity situation than it actually was », Added the AMF in a press release.

As of December 31, 2017, for example, Rallye had, according to the AMF, credit lines with an available amount of 1.325 billion euros, and not 1.745 billion as claimed in the group’s financial communication. However, the group’s liquidity situation ” depended to a greater extent than Rallye’s financial communication suggested on the evolution of the price of Casino shares, which was very volatile and subject to persistent downward pressure “, she explained.

Fines required in July

This erroneous information was “ likely to have an impact on the market’s perception of its financial situation “. And the stock market price of Casino has, according to the AMF, evolved “ at a level higher than it would have been in the presence of accurate and non-misleading information ».

The Sanctions Commission of theAMF estimated that « Rally knew or should have known that the information was false or misleading » and that these actions were “ imputable » to Franck Hattab, the general director and head of financial communications of Rally at the material time.

The two fines had previously been requested by the AMF at the beginning of the summer, for initially higher amounts, namely a required fine of 27.5 million euros. The confirmation of these fines for slightly lower amounts added to the serious financial difficulties hitting Casino. After Moody’s and Fitch, the S&P agency has once again downgraded its credit rating, the second time in less than a month, from CCC- to D. Casino’s assets whet the appetite of buyers, despite these difficulties.

Restructuring expected in the first quarter of 2024

As part of a takeover plan for Casino by Czech billionaires Daniel Kretinsky and French billionaires Marc Ladreit de Lacharrière, backed by the British fund Attestor, an agreement in principle was reached with the creditors. This agreement provides that the creditors signatories to the plan undertake to participate in the process of restructuring the group’s debt. The placement in accelerated safeguard procedure, announced for October, should then allow the remaining creditors to be brought on board, even in spite of themselves.

Casino: why the distributor is far from being out of the woods

The buyers’ offer provides for the contribution of 1.2 billion euros in new money, as well as the reduction of nearly 5 billion euros of the group’s debt. It is also planned to sell Casino activities in Latin America – particularly in Brazil – for which three quarters of the group’s employees work. The restructuring must be completed in the first quarter of 2024, when new CEO Philippe Palazzi, a former manager of the distributor Metro, will take the reins of Casino.

(With AFP)