Mass distribution: Commercial court validates billionaire Daniel Kratinsky’s casino rescue plan
Casino, France’s seventh-largest supermarket group by market share, has teetered on the brink of default after years of debt-financed acquisitions and recent losses of market share to its rivals.
The Paris Commercial Court on Monday gave the green light to the Czech billionaire’s plan Daniel Kratinsky bails out French distributor CasinoIn serious financial difficulties, as part of an expedited bailout process, EP Equity Investments announced a consortium made up of Fimalec and Atester. “The Consortium (…) welcomes the decision of the Paris Commercial Court to respond favorably to the proposal for an accelerated safeguard plan formulated for the takeover of the casino”He said in a press release. “Starting in April, the management team, led by its general manager Philippe Palazzi, will implement an ambitious plan of restructuring, investment and modernization to establish the growth of the group’s brands,” is added.
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The casino group confirmed in a press release published on Monday evening that the Paris Commercial Court has approved the accelerated safeguards plans for the group and its subsidiaries. “It is envisaged that all operations contemplated by the financial restructuring will be carried out on March 27, 2024, subject to the approval by the Financial Markets Authority of the prospectus relating to the various issues of securities provided for by the Accelerated Safeguard Plan. casino”French distributor added.
Casino, the seventh-largest French supermarket group by market share, found itself on the brink of default after years of debt-financed acquisitions. Recent losses of market share to the benefit of its competitors. Existing shareholders in the Stephanois group will be massively diluted as part of a restructuring operation that will end Jean-Charles Nouri’s thirty-year reign over the company, which he controlled through his holding company Rallye.
A consortium led by Kratinsky will hold and control 53.7% of the casino’s share capital. Bailout deal, which provides for an injection of 1.2 billion euros of new money into the casino as well as a reduction of 6.1 billion euros in the group’s debt. The Paris Commercial Court has extended the company’s expedited protection period until February 25.
The casino, which wants to stem losses and boost liquidity at its major hypermarkets, reached an agreement with it last month. Auchan Retail and Les Mousquetaires Group, the parent company of Intermarché, to sell them 288 stores in France. In early February, Groupe Les Muscoutères replaced Carrefour with the acquisition of 25 stores. The sale, which raised fears among unions about a possible break-up of the group, should Leave at the high-end brand Monoprix as well as Franprix Casino, which also focuses on city center stores. On the Paris stock exchange, casino shares rose 3.5% after the green light for the rescue plan was given.
