Casino - comment

Bondholders of course did not have time nor perhaps the inclination to put in a bid for the company last week and so the only two bids for the company are by the known parties of Kretinsky/Fimalac and 3F. While details of the bids will only be made public tomorrow, the creditor contribution each of them seems to factor in is unlikely to benefit the bonds now. Details of the proposals will be made public at the end of the meeting with creditors to be held under the aegis of the conciliators, to be held tomorrow (Wednesday). 

Some details are starting to emerge. Press speculation states that the first proposal from EP Global Commerce proposes injecting €900m from the two parties, plus €450 of fresh equity from secured creditors. In addition, there is a plan to convert a further €500m o secured debt into equity, bringing the total to €1.85bn. 

The second proposal has 3F raising €900m of equity in conjunction with a group of secured creditors and will involve a write-down of Casino debt. Full details of both proposals are expected by the close of business tomorrow. 

Separately, GPA has announced they continue to make progress with splitting and listing the Exito business, The timeline has marginally slipped with the expected close likely to be middle of Q3 2022.