Rallye hired 50,000 people in France in 2022 but could no longer meet its debt repayments, the group fell into debt of more than 8 billion euros in 2023. The parent company of the distributor Casino whose safeguard plan was validated Monday by the courts, indicates Tuesday that as expected it will lose control and that it will request the opening of judicial liquidation proceedings.
In their press release, Rallye and its holding companies (Foncière Euris, Finatis and Euris) say they “
take note
” of the validation on Monday by the Paris commercial court of the rescue plan for the distributor Casino, the last major step before the restructuring of its debt and its takeover by Czech billionaire Daniel Kretinsky.
They recall that “
the effective completion of the financial restructuring of Casino, scheduled for March 27, 2024, will result in massive dilution for existing shareholders
”.
“
Thus, following the restructuring, Rallye will hold approximately 0.1% of the capital of Casino and Rallye will therefore lose control of Casino
.”
“
Rallye will therefore cease payments from the date of completion of the financial restructuring of Casino
,” continues the press release. “
Consequently, on the date of completion of the financial restructuring of Casino and subject to the successful completion of the planned capital operations, Rallye will request the resolution of its safeguard plan and the opening of a judicial liquidation procedure
,” indicates the parent company of Casino.
5 billion euros of debts crushed
“
To the extent that the safeguard plans of the companies Rallye, Foncière Euris, Finatis and Euris are interdependent, Foncière Euris, Finatis and Euris will also request the resolution of their safeguard plan and the opening of a judicial liquidation procedure
”, it is specified.
Casino, which employed 50,000 people in France at the end of 2022 under brands like Casino, Franprix or Monoprix, could no longer meet its debt maturities.
The restructuring of its debt, which plans to wipe out around 5 billion euros of debts, is made possible by the provision of new money to the tune of 1.2 billion euros, including more than 900 million by a consortium of buyers including billionaires Daniel Kretinsky and Marc Ladreit de Lacharrière as well as the Attestor investment fund.