France's Casino said today that it had finalised a binding lock-up agreement to restructure its debt with creditors led by Czech billionaire Daniel Kretinsky, to avert bankruptcy.
Casino had been brought to the verge of default after years of debt-fuelled deals and recent losses in market share to rival supermarket groups.
It said the binding agreement was reached with the consortium led by Kretinsky's company EPGC - alongside Casino's biggest creditor Attestor, and second-biggest shareholder Fimalac, and along with secured creditors while discussions with unsecured creditors continue.
The lockup finalises a July agreement in principle which called for €1.2 billion of new money which would be injected into Casino, as well as a reduction of Casino's debt by €6.1 billion.
Casino shares, which had been suspended, will also resume trading today.
The deal, which massively dilutes shareholders, would bring an end to the 30-year reign of Casino CEO and controlling shareholder Jean-Charles Naouri, 74, who controls Casino via his listed holding company Rallye.
"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," Naouri said.
Casino said it planned to pursue its discussions with the financial creditors not yet party to the lock-Up agreement to obtain their adherence to the latter.
