The Casino group in financial difficulties, immersed in a conciliation procedure to reduce its debt, announced on Wednesday an “agreement in principle” with the State to “defer the payment of taxes and social charges” owed between May and September 2023, it is that is, an amount of approximately 300 million euros.
Casino ensures that the sum will be paid “on the date of completion of the financial restructuring” of the group that employs more than 200,000 people worldwide, including a large part in France under various well-known brands, such as Monoprix, Franprix or Pao de Acucar in Brazil.
In the same press release, the Saint-Etienne group says that it has the “objective” of an “agreement in principle” on the restructuring of its debt “with the main creditors”, “at the end of July”.
6,400 million euros in debt
Casino entered the conciliation procedure at the end of May to renegotiate its debt with its creditors, which amounts to 6,400 million euros of net debt for Casino and around 3,000 million for its parent Rallye. This friendly procedure can last up to four months, plus an optional one.
Reducing Casino’s debt would imply that its creditors, large French and international banks, European or American investment funds and institutional players, agree to put an end to the money owed by the group, in undoubtedly very significant proportions.
The group explains this Wednesday “that it operates several levers in order to preserve its liquidity throughout the conciliation period”, which will end no later than October 25.
In addition to the postponement of taxes and social charges, which the Ministry of Economy and Finance requested by AFP did not want to pronounce, creditors will be asked “in the next few days” to suspend until October 25 “of the payment of interest (and other commissions )” on the one hand, “principal maturities” on the other hand, owed by the group and its subsidiaries. That’s a total of 200 million euros.
Source: BFM TV
