(May 31): Billionaire Daniel Kretinsky is planning to offer a way out with no losses for Casino Guichard Perrachon SA’s most senior creditors.
The Czech investor, who’s offering to inject fresh capital into the ailing French grocer and take a controlling stake, is working on a proposal that would spare losses for more than €4 billion (US$4.3 billion) of secured lenders and noteholders, according to a person familiar with the matter, who asked not to be named because the talks are private.
The proposal includes launching debt buybacks at a deep discount for the company’s €3.6 billion of unsecured and perpetual bonds, but at a higher level than market prices, the person added. Some of these bonds could get converted into equity, eventually leaving the company without unsecured debt, the person said.
Secured bonds issued under the Quatrim unit due January 2024 gained 2.6 cents on the euro and were indicated at 86.8 cents at 11.50am Paris time on Wednesday (May 31), according to data compiled by Bloomberg. Unsecured notes due March 2024 were 1.5 cents higher at 22.7 cents, the data show.