Rally placed in safeguard procedure: "no consequences" for its Casino subsidiary

Despite the placement of Rallye the parent company of Casino in safeguard, the retail sign is not touched by this procedure, repeated Friday a spokesman of Rallye.


Despite the placement of Rallye the parent company of Casino in safeguard, the retail sign is not touched by this procedure, repeated Friday a spokesman of Rallye.

The Casino distribution group, whose parent company Rallye was placed in its demand for the safeguarding procedure Thursday to renegotiate its colossal debt, reiterated Friday that this operation would have "no consequences" on its activities, its strategy or its financial resources.

In a two-minute English conference call, a spokesman for the distribution giant, 51.7 percent owned by Rallye, said there was no impact on the group's operations. "This procedure concerns only the majority shareholder of Casino", which has "not (however) lost control" of its subsidiary, he assured.

"This procedure does not concern the Casino debt"

The distributor remains "focused on its operational activity and the execution of its strategic plan in line with its prospects, as indicated so far to the markets". "This procedure does not concern the debt of Casino", which amounted to the end of 2018 to 2.7 billion euros, added the spokesman, before concluding the conference without any question could be asked .

The purpose of the safeguard procedure is to allow a company time to restructure its debt and thus ensure its sustainability. Rally, which bends under a debt of 2.9 billion euros, and the other holdings the chapeautant got Thursday the opening of such procedures for a period of six months. The repayment of their debts is therefore frozen for this period and two judicial administrators have been appointed by the court. Casino is controlled, via this cascade of holdings, by the businessman Jean-Charles Naouri.

A listing of Casino and Rally suspended Thursday

The listing of the Casino and Rallye titles will resume on Friday at the opening of the Paris market. It was suspended Thursday, at the request of their officials, after a sharp fall in shares of 6.40% to 27.90 euros. At the opening of the markets on Friday, Casino is flying close to 11%.

ref: europe1