PARIS (Agefi-Dow Jones)–Seized by an unidentified investor on May 30, a commission specializing in credit derivatives indicated Monday that no credit event had occurred at the large retail group Casino, heavily in debt.
Casino announced on May 26 that it had obtained from the Paris Commercial Court the opening of a conciliation procedure with its creditors. This conciliation procedure, lasting four months which can be extended by one month, should allow the group to reach an amicable agreement with its creditors on the restructuring of its debt within a more protective legal framework.
At the end of March, the distributor’s gross financial debt amounted to 6.23 billion euros.
If a credit event occurs, this would trigger the unwinding of Credit Default Swaps, or CDS. CDS are derivative instruments allowing investors to insure themselves against the risk of default of an issuer.
A sign that the market fears that Casino will not be able to repay its debt, the group’s one-year CDS stood at 25,519 basis points according to data provided by FactSet, up 90% over one month.
On the Paris Stock Exchange, Casino shares lost 1.1% on Monday around 3:00 p.m., to 4.99 euros.
-Dimitri Delmond, Agefi-Dow Jones; +33 (0)1 41 27 47 31; [email protected] ed: VLV
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June 05, 2023 08:58 ET (12:58 GMT)