Rallye proposes to buy back part of its debt at a steep discount

Posted on Jan 23, 2021 at 8:00 am

Rallye wants to accelerate its deleveraging. The Casino group holding company, controlled by Jean Charles Naouri, has just offered its creditors on Friday to buy back part of its unsecured debt, which amounts to nearly 1.8 billion euros, including that of certain subsidiaries . But with a discount of at least 80%.

In May 2019, faced with debt that had become difficult to bear, Rallye was placed under safeguard proceedings. This resulted, on February 28, 2020, in a safeguard plan providing for a staggering of repayments. Unlike holders of debt secured by Casino shares (1.4 billion euros), which should be paid in February 2024, holders of unsecured debt have seen the repayment of their debts spread over 10 years, with the main payment (for 65% of the amount) the last year. Rallye therefore presents this operation as allowing “ to provide a certain degree of liquidity to the holders of unsecured debt and to the company to improve its debt profile.

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