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Heavily indebted French food retailer Casino has finalised an agreement for a capital injection led by Czech billionaire Daniel Křetínský and a debt restructuring as it rushes to avert default.
The binding agreement builds on the terms of a deal struck in July. It locks in an injection of €1.2bn in new money led by Křetínský and his partners, and a reduction of the company’s debt by €6.1bn.
Shareholders will be massively diluted, and control of the company will pass from Jean-Charles Naouri, who built Casino using high levels of debt and ran it for decades, to the group led by Křetínský. All unsecured debt will be converted into equity.
“Casino has reached a major milestone in its financial restructuring process by obtaining the agreement of its main creditors on a financial restructuring plan that creates a favourable framework for the sustainability of the Group’s activities, the continuation of jobs and head offices, and the continued development of all its brands,” said Naouri.
The company’s share price has plunged more than 88 per cent this year alone.
Casino said it would continue to try to broker a deal with creditors who were not party to the agreement.