|Bid||N/A x N/A|
|Ask||N/A x N/A|
|Day's Range||4.8500 - 5.0300|
|52 Week Range||2.8000 - 12.9600|
|Beta (3Y Monthly)||2.33|
|PE Ratio (TTM)||N/A|
|Earnings Date||Jul 25, 2019|
|Forward Dividend & Yield||1.00 (20.41%)|
|1y Target Est||6.67|
Shares in Rallye, the parent company of French retailer Casino, fell almost 5 per cent on Monday following the disclosure of a series of complex financing arrangements in the empire built by controlling shareholder Jean-Charles Naouri. Casino’s three parent companies, which also include Foncière Euris and Finatis, late on Friday said that they had entered into a number of structured finance agreements with banks. The most significant involved Rallye, which had pledged almost 9 per cent of Casino stock as collateral in €231m worth of structured finance agreements in the form of prepaid forward and equity swaps.
Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Casino Guichard-Perrachon SA and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers. This publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future.
A French commercial court has ruled that Société Générale can call in the collateral it owns in Rallye, the main parent of French retailer Casino, in a setback to controlling shareholder Jean-Charles Naouri’s efforts to restructure the highly-indebted group. , a court-led creditor protection process allowing them to freeze debt payments for up to 18 months.
A French commercial court has ruled that Société Générale can call in the collateral it owns in Rallye, the parent company of French retailer Casino, handing a setback to the group’s controlling shareholder Jean-Charles Naouri, who is trying to restructure the highly-indebted group. In May Casino’s parent companies Rallye, Finantis and Foncière Euris entered into a “procédure de sauvegarde” — a court-led creditor protection process available to solvent companies in financial distress. According to court documents published last week, the disagreement between SocGen and Foncière Euris centres on a derivatives contract that the two entered into back in 2014 in which Foncière Euris pledged 1,770,000 shares in Rallye as collateral — roughly 3.4 per cent of Rallye’s share capital.
(Bloomberg) -- Hedge funds that bet on the demise of Rallye SA will get the pay day they chased for years after a bond auction to settle derivatives linked to the indebted retail group.Buyers of credit-default swaps on the parent of French supermarket chain Casino Guichard-Perrachon SA will collect 87.5% of the amount insured, according to final auction results on Thursday. That equates to a payout of $522 million, based on data from the International Swaps & Derivatives Association.Rallye’s swaps were triggered after the group was placed in creditor protection last month to avoid collapse. Short sellers had been circling since 2015, when Muddy Waters Capital published a scathing attack on the debt-laden and opaque corporate web that allows Casino Chief Executive Officer Jean-Charles Naouri to keep control.“Today is the final conclusion of a bet, and in the end it looks like it was worth taking,” said Anthony Giret, an analyst at Spread Research in Lyon, France. “Many people have thought for some time that Rallye’s debt load isn’t sustainable.”Diameter Capital Partners is among those that may stand to gain from the settlement. Scott Goodwin’s $1.7 billion credit fund has bet against Rallye and recommended that investors buy swaps on its debt.It’s one of the most high-profile in a series of failures paying off for short sellers. Market makers including Citigroup Inc., which has been involved in long and short positions on Rallye, and BNP Paribas SA, which offered bets on the timing of a default, participated in the settlement auction.Rallye, the largest in a series of indebted holding companies Naouri controls, still faces months of negotiations for a debt restructuring in which lenders are expected to take losses.Rallye’s unsecured creditors are likely to swap their debt for new shares and take control of the company, according to Giret at Spread Research. Still, the safeguard procedure in France is so flexible that Naouri could keep control, an outcome that would be almost unheard of in the U.S. or U.K.The level of payment from credit swaps may influence the restructuring talks, according to Alain Lopez, an analyst at brokerage firm Octo Finances in Paris.“This should be a strong indication to Rallye’s administrators that the company’s debt is unsustainable and it needs a short-term solution,” said Lopez. “It’s not enough to kick the can down the road by extending maturities. Rallye debt needs a considerable haircut soon.”(Updates with final auction value from second paragraph.)\--With assistance from Samuel Dodge.To contact the reporter on this story: Katie Linsell in London at email@example.comTo contact the editors responsible for this story: Vivianne Rodrigues at firstname.lastname@example.org, Abigail MosesFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Casino PA said on Tuesday that Regis Schultz, the respected head of its lucrative Monoprix supermarket chain, was leaving, raising concerns more top managers could quit the French firm as it grapples with high debts. Schultz, 50, who is joining Middle Eastern retail group Al- Futtaim, will be replaced by Franprix boss Jean-Paul Mochet.
U.S. short-selling firm Muddy Waters on Thursday rejected the preliminary findings of a probe by France's AMF financial regulator into its criticism of retailer Casino. "We vehemently disagree with the preliminary conclusions of the AMF investigation team, which we believe are tainted by bias," Muddy Waters said in a e-mailed statement. Newspaper Le Monde reported earlier on Thursday that the AMF regulator suspects Muddy Waters of "deception" regarding supermarket retailer Casino whose shares have been hurt by Muddy Waters' negative comments.
Moody's Investors Service ("Moody's") has today downgraded French grocer Casino Guichard-Perrachon SA's (Casino) long-term corporate family rating (CFR) to B1 from Ba3 and its probability of default rating (PDR) to B1-PD from Ba3-PD. Moody's has also downgraded Casino's senior unsecured long-term ratings to B1 from Ba3, its senior unsecured MTN program rating to (P)B1 from (P)Ba3, the deeply subordinated perpetual bonds' rating to B3 from B2. "We believe that the debt restructuring of Casino's main shareholder Rallye and of its controlling holding companies creates additional uncertainty at a time when trading conditions in the French retail market remain highly challenging and increases the execution risk of Casino's deleveraging," says Vincent Gusdorf, a Moody's Vice President -- Senior Credit Officer and lead analyst for Casino.
Shares in French retailer Casino surged more than 10% on Friday after controlling shareholder Jean-Charles Naouri won some respite as his debt-laden Rallye investment vehicle was placed under protection from creditors. Investors and analysts, however, said the move did not solve all of Rallye or Casino's problems and that the impact on the complex ownership structure remained uncertain. A Paris commercial court on Thursday placed Rallye, the parent company of Casino, under protection from its creditors for at least six months.
Rallye and the other companies in Naouri’s chain of control over Casino said late on Thursday that they would enter so-called safeguard proceedings, which allow businesses time to restructure their debts. The latest crisis was forced by a precipitous decline in Casino’s share price. Rallye’s borrowings will now be restructured. It had 2.9 billion euros ($3.2 billion) of net debt as of December 31.
Shares in French supermarket retailer Casino rebounded on Friday in volatile trading, after a move to place Casino's parent company Rallye under protection from creditors offered an element of relief, traders and analysts said. Casino's shares rose by around 10 percent in early session trading on Friday. Analysts at JP Morgan said any weakness in Casino's share price offered a good buying opportunity.
French retailer Casino said on Friday that the filing of its parent company for protection from creditors had no impact on the execution of its strategy and said the majority shareholder remained in control. Rallye was placed under protection from creditors for at least six months as 70-year old retail kingpin Jean-Charles Naouri battles to shore up the finances of his retail empire. Casino is Rallye's main asset with a 51.7 percent stake.
Short-seller Muddy Waters said on Friday that news Rallye, the parent company of French retailer Casino, had been placed under protection from creditors was "a resounding vindication of the warnings we sounded". In 2015, Muddy Waters criticized Casino's complex structure and accounting practices, saying the supermarket retailer was "dangerously leveraged", and managed for the short-term. A spokesman for Casino declined to comment on Muddy Waters statement when contacted by Reuters.
Shares in indebted French supermarket group Casino and its parent Rallye were suspended on Thursday pending a statement, fuelling speculation of a debt restructuring that could weaken the grip of retail kingpin Jean-Charles Naouri. Prior to the suspension, shares in Casino, which is grappling with tough trading conditions as well as high borrowings, were down 6.4 percent, while its credit default swaps (CDS) hit record highs. "The suspension of the parent company shares suggest that a form of debt restructuring will have to take place in those companies," Bernstein analyst Bruno Monteyne said in a note.