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French retailer Casino extends deadline with creditors to Oct. 3

Published 29/09/2023, 18:29
© Reuters. FILE PHOTO: A logo of French retailerÊCasinoÊis pictured outside aÊCasinoÊsupermarket in Nantes, France, July 27, 2023. REUTERS/Stephane Mahe/File Photo
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PARIS (Reuters) - Casino, the indebted French supermarket retailer under pressure on the bond markets, said on Friday that it has extended a deadline with its creditors to Oct. 3.

"This extension will enable ongoing negotiations on a lock-up agreement to continue," said Casino.

Casino's shares, which closed up 1.7% on Friday, have slumped by around 86% since the start of 2023. Casino has been hit by fierce competition in the French supermarket sector, and was forced to restructure after years of debt-fuelled deals started to weigh on its balance sheet.

Earlier this year, Casino earmarked a debt restructuring deal with creditors led by Czech billionaire Daniel Kretinsky.

© Reuters. FILE PHOTO: A logo of French retailerÊCasinoÊis pictured outside aÊCasinoÊsupermarket in Nantes, France, July 27, 2023. REUTERS/Stephane Mahe/File Photo

Nevertheless Casino, whose parent holding company is Rallye, led by Jean-Charles Naouri, has remained under pressure on the debt markets.

In August, credit rating agency Standard & Poor's (S&P) cut its rating on Casino to D, denoting a likely default, after Casino failed to pay the interest on a bond.

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