Casino debt discharge traders with fears growth on turbulent groceries

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The value of the French grocery casino debt has decreased to multiple levels, as fears grow that the continuous weak profits may lead to the breach of loan covenants next year.

casinoWhich lost its share in the market for competitors in the crowded foodstuff sector in France, has been subjected to renewed pressure from debt markets in recent weeks, as traders now quote a guaranteed loan of 1.4 billion euros at a price of 61 cents on the euro.

The deep discount of the nominal value suggests that lenders have prepared to obtain the possibility of highly slope losses, more than a year after the casino ends Bruising restructuring Where more than 5 billion euros of debt has been eliminated and exchanged for stocks.

The former owner of the Kazino, Jean Charles Nigeri, built retail stores in a global player with a series of high benefit acquisitions. She had a large group of supermarkets and supermarkets in France, along with an international company that stretches from Asia to Latin America.

But after years of struggle with heavy debt, which left the casino hunger from investment, he was the seller Be forced to surrender And approval to restructure comprehensive debts in 2023, which saw Czech billionaire Daniel Křetínský control.

The value of the French supermarket, which was reported to be about 9 billion euros last year, is a market value less than 250 million euros. Her total debts amounted to 2 billion euros at the end of 2024.

Clément Genelot, stock analyst at the Investment Bank in Paris, Bian Garnier, wrote in a recent note that “there are still signs of commercial recovery” in the burning retailer and that the need for more capital of Křetínský, who owns 53 percent, cannot be excluded.

A person close to Křetínský said that “he was always going on in his mind” that an increase in the second capital may be needed. The person added that although this could demand negotiations with creditors, it will not require full debt restructuring.

Several structural advisers told the Financial Times that they were actively searching for states with different categories of casino for any possible discussions.

The casino refused to comment.

The troubled debt investors said that the profits of the weak casino pushed fears of the breach of the covenant on the horizon. The retailer accounts in March indicated that the violation may lead to “immediate payment” request for their loans, which have crossed conditions that could affect other casino debts.

As part of the restructuring of last year, he agreed to a set of strict covenants on the 1.4 billion euros loan and a separate credit line of 711 million euros of banks, which must be complied with from September. Failure to do this can cause re -negotiation on its debts.

One of these conditions dictates that the net debt rate to profits in its basic works should be less than 8.34 times. The casino stated that this financial lever rate was 14.6 times at the end of March, up from 4.9 times in the previous year, as a result of its declining profits.

Genilt said that the casino should be able to comply with the conditions of debt by the end of the year, but there was a “great danger” to violate the era next year.

Fitch ranked the guaranteed loan of the Casino in CCC-, which put it in a slide indicating “great credit risks” where “failure to pay is a real possibility.”

The casino boasted with a strong investment credit classification a decade ago, while its owner, Niweer, from the French elite, was widely due to his acumen.

The wallet in which it was built was dismantled as the group sold the stores and companies affiliated to reduce public expenditures and service its debts-although it kept its valuable local network from the city’s interior stores, and trades under brands including Monoprix and Franprix.

Additional reports by Iwan Healy and Ian Johnston