Casino - comment

The wedding is off, but there still might be a marriage! Teract and Casino announced last night the end of the discussions between Teract and Casino. However, subsequently, there is an announcement that Zouari, Pigasse and Neil are still in discussions with Casino, via their 3F vehicle, in order to recapitalise Casino. Funds owning the RCF, who have coordinated with Xavier Niel in the past, notably Eir, also appear willing to participate. No real details have emerged and our expectation is it will take a similar approach to that of Kretinsky where capital injection will be subject to debt write-downs/sub-part tenders.

Ultimately, it does show Casino as an asset with at least two interested parties. Sources close to 3F appear to allude to the possibility of working together, which would remove any competitive tension, and likely leave bondholders worse off. The question remains whether bondholders are going to be able to participate in the deals or will be crammed down via a Sauvegarde proposal.

A further point worth mentioning is the parameters the conciliators Aurelia Perdereau and Marc Sénéchal are operating under - the best industrial solution to sustain the Company and preserve jobs. Recovery for unsecured bondholders is not the primary concern.