By Mauro Orru
Casino Guichard-Perrachon said it has received two proposals to strengthen its capital base, a day after the group warned it could default on part of its debt.
The French grocer said Tuesday that one proposal came from EP Global Commerce and Fimalac, and the second from 3F Holding. Casino said it would analyze the two proposals and put them to creditors on Wednesday, when it expects to disclose details of the offers.
Casino has for months been grappling with high debt and has entered talks with creditors to ensure it has enough funding available. Last week, the group said it was seeking to raise at least 900 million euros ($982.2 million) to deliver its midterm targets.
“Casino’s governance bodies will not take any decision relating to such proposals until they have been presented and discussed with the creditors under the aegis of the conciliators,” the group said in a statement.
On Monday, the company said it had fully drawn its revolving credit line at the end of June, with the ratio of gross secured debt to earnings before interest, taxes, depreciation, and amortization after lease payments expected to exceed a cap that is closely watched by investors.
The company warned it could be in default under its revolving credit line by the end of August, “which would result in a cross-default in respect of a part of its financial debt at the level of its operating subsidiaries.”
Write to Mauro Orru at [email protected]; @MauroOrru94
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