The state guarantee covers 80% of the loan amount.
The Lagardère group, whose turnover is battered by the health crisis and contested governance, has been granted a loan guaranteed by the State of 465 million euros, according to the Official Journal Sunday.
The mention states : «The State guarantee is granted to BNP Paribas, Caisse Régionale de Crédit Agricole Mutuel de Paris et d’Ile-de-France, Commerzbank, Aktiengesellschaft, Paris Branch, Crédit Agricole Corporate and Investment Bank, Crédit Lyonnais, ING Bank NV , French Branch, Natixis, Société Générale, UniCredit Bank AG, for the loan mentioned in article 2 of this decree, granted to the Société en commandite par actions Lagardère SCA“. The state guarantee covers 80% of the amount of the loan, granted on December 18.
The group, led by Arnaud Lagardère and owner of the publisher Hachette, the Relay boutiques and the Europe 1 media, Paris Match and Sunday newspaper, had recorded in the third quarter a turnover down 38%. The revenues of the distribution branch in stations and airports (Relay and duty free shops) notably collapsed by 66% to 393 million euros, after having already fallen by 55% in the first half.
The family group, which is listed on the stock exchange and has the status of a limited partnership with shares (SCA), is also the subject of a rebellion by its two first shareholders, the Vivendi group and the Amber fund: they together represent 49% of the capital and criticize the governance of Arnaud Lagardère, but have so far failed to obtain the convening of an extraordinary general meeting.
As a reminder, loans guaranteed by the State (PGE) make it possible to facilitate the granting of a loan to a company having cash flow difficulties. In the event of non-repayment, the State undertakes to assume the major part of the remainder of the credit to be repaid, in this case 80%.
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