The commercial court validates the rescue plan of the Casino group led by Czech billionaire Daniel Kretinsky

The consortium led by Kretinsky will own and control 53.7% of Casino's share capital under the bailout agreement. MAXPPP

Casino, the seventh French supermarket group in terms of market share, found itself on the verge of default after years of debt-financed acquisitions and recent losses. market share to the benefit of its rivals.

The Paris commercial court on Monday gave the green light to Czech billionaire Daniel Kretinsky's plan to bail out French distributor Casino, in serious financial difficulties, as part of an accelerated safeguard procedure, said the consortium formed d'EP Equity Investment, Fimalac and Attestor.

"The consortium (…) welcomes the decision of the Paris commercial court to give a favorable response to the proposal for an accelerated safeguard plan that& ;#39;he formulated for the takeover of Casino", he indicated in a press release. "Starting in April, the management team, led by its general director Philippe Palazzi, will implement an ambitious reorganization plan, d& #39;investment and modernization to establish the development of the group's brands", it is added.

On the verge of stopping payments

Casino, the seventh French supermarket group in terms of market share, found itself on the verge of default after years of debt-financed acquisitions and recent losses. market share to the benefit of its rivals. The current shareholders of the Stéphanois group will be massively diluted as part of the restructuring operation which will put an end to thirty years of reign of Jean-Charles Naouri over the company, which he controlled via his holding company Rallye.

The consortium led by Kretinsky will own and control 53.7% of Casino's share capital as part of the bailout agreement, which provides for the injection of 1.2 billion euros of new money in Casino, as well as a reduction of 6.1 billion euros in the group's debt.

The Paris commercial court had extended the company's accelerated safeguard period until February 25. Casino, which is seeking to stem losses at its large hypermarkets and raise liquidity, reached agreements last month with Auchan Retail and Groupement Les Mousquetaires, parent company of Intermarché, to sell them 288 stores In France. At the beginning of February, the Groupement Les Mousquetaires replaced Carrefour with the acquisition of 25 stores.

The sale, which has sparked union fears about a possible dismantling of the group, should leave Casino with the high-end Monoprix brand as well as Franprix, which also focuses on stores city ​​center. On the Paris Stock Exchange, Casino shares climbed 3.5% after the announcement of the green light for the rescue plan.