2023-07-03 15:31:38
© Reuters. Shopper at a supermarket in Nice 01/15/2019 REUTERS/Eric Gaillard
PARIS (Reuters) – Shares in France’s Casino plunged more than 20% to new all-time lows on Monday after the supermarket chain warned it was facing increased “default” risk.
Casino is currently the largest shareholder of GPA, owner of the Pão de Açúcar chain (BVMF:). Last week, however, he said that the stake in the Brazilian company could be sold as part of the French chain’s three-year plan to sell assets.
Last month, Casino completed the sale of its residual 11.7% stake in the self-service wholesale chain Assaí (BVMF:).
Casino had to ask a court to grant it a grace period to protect the indebted retailer from a possible “default” while it tried to reach a debt restructuring deal with creditors.
Casino and holders of its 6.4 billion euro debt began talks in June as the group races to stay afloat by converting much of its debt into equity, as well as through divestments and an agreement to defer. taxes and social charges with the government.
Your last request has become necessary as some creditors have not yet agreed to waive their right to demand immediate payment of their claims following a “default” event.
While some creditors agreed, such a waiver “was not obtained from holders of (Casino Group) Senior Unsecured Notes due in 2026 and 2027,” Casino said.
“For creditors who have already refused or are in the process of refusing the conciliator’s requests, the Group will take all necessary measures to ensure the same treatment to the relevant creditors and preserve its liquidity during the conciliation process,” the statement said.
Casino faces bond interest payments of around €12 million as of July 15.
Clement Genelot, an analyst at Bryan Garnier, said that, thanks to a grace period, he did not expect Casino to default.
Casino also risks breaching one of its financial commitments under a revolving credit facility, which could also lead to a “default” by the end of August, the company said on Monday.
The group added that conciliators — court-appointed intermediaries with the aim of facilitating debt restructuring talks between the company and its creditors — have already asked creditors of the revolving credit facility to waive this potential further event of default.
So far, those creditors have not responded to the request, the company said.
At the worst moment, Casino shares reached 3.22 euros, down 20.79%, but losses slowed down and, around 9:40 am (Brasília time), fell 3.8%, to 3.91 euros .
(Reporting by Tassilo Hummel and Chiara Elisei)
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