French supermarket retailer Casino is looking to start official negotiations with its creditors as it seeks a way out of its financial woes while weighing two tie-up bids from wealthy investors.
Read the full article on the Reuters website
NAM Implications:
- A classic problem re takeovers having to service debt.
- €6.4bn, obligated to reduce debt by 50% by 2025…
- …at 4.5%+ after decades at near-zero interest rates.
- Selling off unprofitable outlets can give some breathing space…
- But ultimately, Rating Agency Standard & Poor’s assessment says it all:
- “We believe the consent solicitation process, combined with the group’s weak operating performance, fragile liquidity position and unsustainable capital structure make a default, distressed exchange or redemption appear inevitable within six months.”
- Watch this space….
