Casino Guichard-Perrachon, the troubled French grocer, has announced that it has reached a preliminary agreement with a consortium led by Czech billionaire Daniel Kretinsky. The objective of this agreement is to bolster the company’s capital base and address its debt restructuring.
The consortium, spearheaded by Kretinsky and comprising of EP Global Commerce, Fimalac, and Attestor, as well as billionaire financier Marc Ladreit de Lacharriere, along with some French banks, have committed to participating in this rescue operation.
At the end of June, Casino’s net debt stood at 6.1 billion euros ($6.70 billion), an increase from 5.1 billion euros at the end of March. This rise in debt, coupled with a decline in market share in its domestic market, has presented significant challenges for the company.
To ensure the continuity of its operations, Casino has been engaged in discussions with creditors for several months to secure sufficient liquidity.
The company aims to finalize a binding lock-up agreement in September and complete the restructuring process by the first quarter of 2024.