PARIS: Casino, a French retail giant, has received the approval of the Paris Commercial Court for its accelerated financial restructuring plan, which will massively dilute the stakes of its existing shareholders. The plan, which is expected to be completed by 27 March 2024, will reduce Casino’s debt by €3.6 billion and extend its maturities by five years.
However, this will also have a severe impact on Rallye, Casino’s parent company, which will lose control of the retailer as its shareholding will drop from 51.7% to 0.1%. Rallye, which is already under a safeguard plan since 2019, will be unable to repay its €2.9 billion debt and will face bankruptcy.
Rallye announced that it will seek the termination of its safeguard plan and the opening of winding-up proceedings on the date of completion of Casino’s restructuring. The same applies to Rallye’s subsidiaries, Foncière Euris, Finatis and Euris, which are also under safeguard plans and hold stakes in Casino.
The fate of Casino and Rallye, which have been entangled in a complex financial and legal web for decades, will be decided by the end of March. The restructuring of Casino is seen as a crucial step to ensure its survival and competitiveness in the challenging retail market.