Shares in Casino Guichard-Perrachon experienced a significant drop following the announcement of its financial restructuring plans. The company is seeking approval from a U.S. court for these proposed measures.

Share Price Movement

As of 1043 GMT on Monday, Casino’s shares were trading 8% lower at EUR0.42.

Chapter 15 Proceedings

Casino recently filed petitions with the Bankruptcy Court of the Southern District of New York for Chapter 15 proceedings under the U.S. Bankruptcy Code. These are considered technical proceedings and are not anticipated to impact the company’s relationships with its operational partners or employees.

Financial Restructuring Goals

The company aims to secure approval for expedited safeguard procedures at both the group level and for six of its subsidiaries. It also plans to implement proposed measures within the country.

Ongoing Challenges

Casino’s decision to bolster its finances comes as it grapples with significant debt levels and difficult market conditions in France, its primary market.

Recent Developments

In recent months, Casino has made strategic moves to address its financial situation, including selling stores to retailers like Intermarche, Groupement Les Mousquetaires, and Auchan Retail France. Additionally, the company has received antitrust approvals for an acquisition of control led by Czech billionaire Daniel Kretinsky.

Future Outlook

The consortium involved in the restructuring plan is expected to take a 53.7% stake in Casino Guichard-Perrachon upon completion of the process.

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