Jean-Charles Naouri must find 50 million before Christmas for his Foncière Euris
In the annual reference document released this week, the auditor of Foncière Euris, holding company of the Casino group, warns that the company lacks cash to honor a large derivatives debt before Christmas. What weaken the control of the distribution group.
It is sometimes necessary to bring a magnifying glass to detect the financial setbacks of the CEO of the Casino group, Jean-Charles Naouri. In this case, you have to go to page 12 of Foncière Euris' annual financial report, published on Monday 25 April. As a reminder, the former director of Pierre Bérégovoy took control of Casino thanks to a series of holding companies. Foncière Euris, located under the holding companies Euris and Finatis, owns 57.9% of Rallye, which itself owns 52.3% of Casino.
However, on page 12 of the document, the statutory auditor explains: "The projected cash flow of Foncière Euris, as estimated to date, does not allow the derivative banks to be reimbursed at the maturity date of December 2022 (or June 2023 in some cases)". The news alerted scrupulous investors. Foncière Euris owes its creditors a total of 54 million euros: 50 million euros expiring in December 2022 and 4 million euros in June 2023. Because, unlike conventional loans, contracts in the form of derivatives are not "frozen" by the safeguard procedure for holdings in progress since May 2019. They must therefore be paid for.
The Societe Generale precedent
Societe Generale knows something about it. In 2019, when all of the group's holding companies were placed under safeguard proceedings, the bank had obtained through legal proceedings the benefit of Rallye shares as collateral for derivative contracts concluded in 2014 with the same Foncière Euris. She had thus found herself with 1.77 million Rallye shares, or 3.4% of the capital, which she had undoubtedly hastened to convert into cash.
Even today, if Foncière Euris could not honor its debts, the auditor reminds that the pledges on Rallye shares could result in a considerable loss of control of Casino's parent holding company. "The percentage of Foncière Euris in Rallye would drop from 57.9% to 39.8% in capital and from 71.8% to 55.6% in voting rights", details the document. What mortgage a little more the future of Jean-Charles Naouri at the head of Casino.
In the annual reference document released this week, the auditor of Foncière Euris, holding company of the Casino group, warns that the company lacks cash to honor a large derivatives debt before Christmas. What weaken the control of the distribution group.
It is sometimes necessary to bring a magnifying glass to detect the financial setbacks of the CEO of the Casino group, Jean-Charles Naouri. In this case, you have to go to page 12 of Foncière Euris' annual financial report, published on Monday 25 April. As a reminder, the former director of Pierre Bérégovoy took control of Casino thanks to a series of holding companies. Foncière Euris, located under the holding companies Euris and Finatis, owns 57.9% of Rallye, which itself owns 52.3% of Casino.
However, on page 12 of the document, the statutory auditor explains: "The projected cash flow of Foncière Euris, as estimated to date, does not allow the derivative banks to be reimbursed at the maturity date of December 2022 (or June 2023 in some cases)". The news alerted scrupulous investors. Foncière Euris owes its creditors a total of 54 million euros: 50 million euros expiring in December 2022 and 4 million euros in June 2023. Because, unlike conventional loans, contracts in the form of derivatives are not "frozen" by the safeguard procedure for holdings in progress since May 2019. They must therefore be paid for.
The Societe Generale precedent
Societe Generale knows something about it. In 2019, when all of the group's holding companies were placed under safeguard proceedings, the bank had obtained through legal proceedings the benefit of Rallye shares as collateral for derivative contracts concluded in 2014 with the same Foncière Euris. She had thus found herself with 1.77 million Rallye shares, or 3.4% of the capital, which she had undoubtedly hastened to convert into cash.
Even today, if Foncière Euris could not honor its debts, the auditor reminds that the pledges on Rallye shares could result in a considerable loss of control of Casino's parent holding company. "The percentage of Foncière Euris in Rallye would drop from 57.9% to 39.8% in capital and from 71.8% to 55.6% in voting rights", details the document. What mortgage a little more the future of Jean-Charles Naouri at the head of Casino.