By Andrea Figueras
Shares in Casino Guichard-Perrachon plunged after the company said it aims to receive approval by a U.S. court for its financial restructuring.
At 1043 GMT on Monday, shares traded 8% lower at EUR0.42.
On Friday, the French grocer said it filed petitions before the Bankruptcy Court of the Southern District of New York for the opening of Chapter 15 proceedings under the U.S. Bankruptcy Code.
“In the same way as accelerated safeguard proceedings, Chapter 15 proceedings are technical proceedings and will have no impact on the group’s relations with its operating partners (in particular its suppliers and franchisees) or its employees,” the company said.
The company aims to get approval for expedited safeguard procedures at the group level and for six of its subsidiaries, as well as for the implementation of the proposed measures in the country, it said.
The hearing is expected to take place on March 21, the grocer said.
Casino intends to bolster its finances, as for months it has been facing high debt and challenging market conditions in France, its home market.
In January, the French competition regulator cleared the acquisition of 61 Casino stores by French retailer Intermarche.
Casino also reached agreements to sell almost all of its hypermarkets and supermarkets to Groupement Les Mousquetaires and Auchan Retail France.
In February, the grocer said it received antitrust approvals in several jurisdictions for an acquisition of control of the company by a consortium, led by Czech billionaire Daniel Kretinsky, banks and other creditors.
The consortium will take a 53.7% stake when its restructuring plan is completed.
Write to Andrea Figueras at [email protected]
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