Rallye, the parent company of the huge retailer Casino, announced on Thursday to sort out security, which will allow him to renegotiate the terms of repayment of his debt.
Rally, struggling with debt of 2.9 billion euros, and other holding companies of the caper, has asked and opened safeguarding procedures for a period of six months, says the group in a statement. Paying these debts is so frozen for this period.
Two court administrators, Hélène Bourbouloux and Frédéric Abitbol, were appointed by the court. This decision comes after the list of Casino and Rallye shares has been suspended, at the request of their officials, on Thursday at the Paris Stock Exchange, after a sharp fall in securities.
"In a continuing context of speculative and huge assaults to which group guarantees are a subject, the companies being protected intend to ensure, within the framework of these procedures, the integrity of the group and reinforce them. financial situation in a stable environment, "explains rally.
The company, its subsidiaries and parent companies have financial debts estimated at the end of December almost € 3.3 billion. For several months, investment funds specializing in short sales have been very aggressive in terms of the casino and Rally distributor, criticized for their high debt.
Casino isn't about the procedure
Casino, which has its headquarters in Saint-Etienne, is managed by this waterfall of holdings, by businessman Jean-Charles Naouri. Casino and Go Sport, for their part, are not concerned about these procedures.
Casino noted in a separate statement that this business did not affect his business and employees.
Casino, in the red last year with a net loss of 54 million euros, launched in June 2018 is a plan for the sale of non-strategic assets, including storage walls. Initially set at 1.5 billion euros, this scheme was extended to at least 2.5 billion euros by the first quarter of 2020.
What is this procedure?
The safeguarding procedure, which protects companies that are not in a state of payment, aims to give them time to restructure their debt and ensure that they are sustainable.