Shares in Casino Guichard-Perrachon surged on Tuesday as the French grocer announced a new agreement in principle with its creditors. The deal has already garnered positive investor sentiment, with Casino shares trading 4% higher at EUR1.78 as of 0839 GMT.
Previously, Casino had been actively working with creditors to address its debt and sustain its business operations. At the end of June, the company's net debt stood at EUR6.1 billion, slightly down from EUR6.4 billion at the end of last year.
Under the newly reached agreement, a majority of holders of senior secured notes issued by Quatrim, which manages the group's properties, has come together to extend the maturity on these notes from January 2024 to January 2027. Casino emphasized that this maturity extension would allow its property entity sufficient time to implement an asset-sale plan and reduce debt.
Furthermore, as part of the deal, Quatrim's assets will be ring-fenced, safeguarding them from potential risks. This move contributes to the overall stability and financial health of the group.
It is important to note that this agreement builds upon a previous agreement reached in July between Casino and a consortium consisting of EP Global Commerce, Fimalac, Attestor, and other creditors, including French banks.
Casino's proactive approach in addressing its debt situation highlights its commitment to long-term financial stability and growth. With these developments, the company is well-positioned to navigate the challenging retail environment and strengthen its core business operations.
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