Paris (AFP)
The parent company of the supermarket giant Casino, controlled by the businessman Jean-Charles Naouri, was forced to take the safeguard procedure Thursday to renegotiate its heavy debt, safe from attacks funds .
The activity and the employees of the distribution group are not affected by this procedure, said Casino, which is 51.7% owned by Rallye.
The safeguard procedure, which protects companies that are not in a state of cessation of payments, aims to give them time to restructure their debt and ensure their sustainability.
Rally, which is struggling under a debt of 2.9 billion euros, and other holdings the caper, got Thursday, opening safeguard proceedings for a period of six months, the group said in a statement. Payment of these debts is therefore frozen for this period.
Casino is controlled, via this cascade of holdings, by the businessman Jean-Charles Naouri. Casino and Go Sport, are not concerned by these procedures, is it added.
Two court administrators, Hélène Bourbouloux and Frédéric Abitbol, were appointed by the court.
? Resumption of trading?
This decision comes after the listing of Casino and Rallye shares was suspended, at the request of their officials, Thursday on the Paris Stock Exchange, after a sharp fall in securities.
A little before this suspension, around 10:30 (08H30 GMT), Casino fell 6.40% to 27.90 euros.
"In a persistent context of speculative and massive attacks of which group securities are the subject, the companies in safeguard intend to ensure in the framework of these procedures the integrity of the group and consolidate their financial situation in a stabilized environment," explains rally.
The holding company and its parent companies have a financial debt estimated at the end of December at almost € 3.3 billion.
"Information will be regularly communicated to the market on the evolution of the procedure.The listing of all securities issued by the companies concerned will resume on May 24 at the opening of the market," said Rallye.
For several months, investment funds specializing in short selling are very aggressive vis-à-vis the distributor Casino and Rally, criticized for their high debt.
Things have been complicated in recent weeks, after several rating agencies downgraded the rating of Casino, which in turn relativized the "impact" of these downgrades on the availability or cost of its financial resources.
Nevertheless, the situation of the supermarket giant is closely scrutinized: the creditor banks of Rally have obtained collateral Casino securities.
? Asset Disposal Plan?
For its part, Casino, in the red last year with a net loss of 54 million euros, launched in June 2018 a plan for the sale of non-strategic assets, including store walls. Initially set at 1.5 billion euros, this plan has been extended to at least 2.5 billion euros by the first quarter of 2020.
The distribution juggernaut, which owns the Monoprix, Leader Price and CDiscount brands, was also mistreated last year. The doubts of financial analysts on its solvency have rekindled on investors worried about the valuation of Casino securities in the accounts of its parent company, Rallye.
Its net debt reached 2.7 billion at the end of 2018.
As part of its divestment plan, the retail giant has already sold the walls of 67 Monoprix stores, as well as those of 26 supermarkets, but also several deficit hypermarkets while closing sales outlets, notably under the Leader banner. Price.
The distributor reaffirmed its objectives at the end of April for 2019 despite a 0.5% decline in sales in the first quarter.
? 2019 AFP