Casino Creditors Push for €1.2 Billion Injection in Debt Overhaul

The latest proposal from the company’s Term Loan B creditors seeks to slash outstanding loans to €500 million, a significant drop from the current €1.4 billion. This move challenges a November plan supported by France Retail Holdings, which suggested a smaller €910 million capital increase and a debt ceiling of €800 million. While the creditor group previously aligned on certain terms, the new offer highlights ongoing friction regarding interest payments and corporate governance.

Standstill Agreements Buy Crucial Time

To facilitate further negotiations, Casino has secured temporary breathing room through standstill agreements with its lenders. The Term Loan B group has agreed to pause its right to collect payments until Feb. 21, while a secondary group of creditors extended their standstill to Feb. 28. These windows are critical for the retailer as it attempts to finalize a definitive restructuring framework by the end of the second quarter.

Despite the potential for a larger capital infusion, the market reacted with skepticism. Shares of the grocer—which operates the Monoprix and Franprix chains—fell 1.9% during Wednesday morning trading in Europe. The company maintains that no final agreement has been reached between Casino, its majority shareholders, and the creditor groups as talks continue behind closed doors.