But that’s not all. Additional funding of €275 million is on the horizon, thanks to creditors and existing shareholders, which, combined with the consortium’s input, completes the €1.2 billion financial jigsaw.
In a strategic gambit, Casino will play its cards by swapping €4.9 billion of its debt for equity, allowing it to zero out its debt tab, passing on shares to creditors instead.
However, there’s a twist in the tale: Current stockholders might find their share diluted. Rallye SA, a fellow French supermarket maverick currently wielding 61% of Casino’s voting rights, stands to lose its dominion.
Casino’s comeback also involves a tactical alliance with the French government to postpone a looming €300 million tax and social security bill. This debt, however, is earmarked for repayment post-restructuring.
The Road Ahead
While the deck seems stacked in Casino’s favor, there are a few more cards to be played. An independent audit, necessary regulatory green lights, and a nod from the Luxembourg Insurance Commission are still in the queue.
