(Bloomberg) -- Casino Guichard-Perrachon SA said it will need an equity boost of €900 million ($981 million) or more and the conversion of at least its unsecured debt into stock as the beleaguered French retailer hammers out a restructuring plan.
The grocer and its creditors are aiming for a deal by the end of July, though the so-called conciliation talks they entered last month could drag on until late October, Casino said in a statement on Monday. Casino reports first-half earnings on July 27, Chief Financial Officer David Lubek told reporters Monday.
The debt-laden retailer and its Chief Executive Officer Jean-Charles Naouri struggled for years to shore up its balance sheet, until agreeing to enter court-supervised talks with creditors. The retailer has already received approaches from two groups of investors, each proposing equity injections of €1.1 billion.
Casino shares fell as much as 2.4% in Paris trading. The stock has declined 22% so far this year.
One offer is led by Czech billionaire Daniel Kretinsky, who holds a stake of about 10% in the French company. Kretinsky said he’s willing to invest €750 million himself provided Casino slashes €3.6 billion of unsecured borrowings through bond buybacks and a conversion of debt into equity. He’d be joined by Fimalac, which would invest €150 million.
Another approach, led by telecom mogul Xavier Niel, said its founder and two business partners would invest as much as €300 million in a broader €1.1 billion rescue plan. Details on how the trio would raise the remainder of the funds have yet to emerge.
On Monday’s call, Lubek said the retailer had enough funds to allow it to operate until the end of the year, provided some conditions are met, including the closure of a sale of some stores to Groupement Les Mousquetaires. Lubek said Casino aims to boost its convenience store formats, notably its Monoprix and Franprix banners, as part of its business plan.
(Updates with information on strategy, background on approaches)
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