Brazilian Distribution Company Reveals Casino’s Debt Restructuring Plan
Brazilian distribution company Companhia Brasileira de Distribuição (GPA) has announced the details of Casino’s debt restructuring plan. Casino, a French retail company and majority shareholder of GPA, has entered into a preliminary agreement with EP Global Commerce a.s., Fimalac, and Attestor, collectively known as the Consortium, along with some of its financial creditors.
The preliminary agreement, approved by Casino’s Board of Directors, aims to strengthen the Casino Group’s equity structure and restructure its financial debts. As part of this agreement, a definitive agreement is expected to be reached in September 2023. This agreement will be effective through an accelerated safeguard procedure to be requested in France in October 2023 and implemented throughout the first quarter of 2024.
Under the terms of the preliminary agreement, Casino shareholders will face significant dilution, with the current controller, Rallye, losing control of Casino. As outlined in the agreement, Casino plans to maintain its current equity interest of approximately 98% in Cnova N.V., a subsidiary, and sell non-core assets, including Latam assets, as part of its strategic plan.
GPA has stated that it does not possess further information about the preliminary agreement but remains committed to keeping the market informed as new information is released by Casino.
For more details on the preliminary agreement and Casino’s announcement, including a comprehensive presentation in English, interested parties can visit the following links: [include links]
The announcement by Casino represents a significant development in the ongoing debt restructuring process. While the preliminary agreement aims to strengthen Casino’s financial position, it will likely result in the dilution of Casino shareholders and a change in control. The implementation of the agreement is expected to unfold over the next year, with further details to be communicated by Casino.
It is crucial to note that this article does not constitute financial advice and is for informational purposes only. As with any investment-related matter, individuals are encouraged to conduct their own research and seek professional advice before making any decisions.
