Rallye finalizes safeguard plans, targets approval in first quarter

By Caroline Salls

Pittsburgh, Dec. 9 – Rallye, Fonciere Euris, Finatis and Euris have finalized the terms of their safeguard plans, which were drawn up with judicial administrators’ consent, according to a news release.

At the start of the safeguard proceedings Rallye’s gross financial debt was €2,923,000,000.

The companies said the draft safeguard plans provide for the complete discharge of their debt through casino dividends, the sale of non-strategic assets and different refinancing options.

Accepting creditors may appropriate the collateral granted in the form of cash as soon as the safeguard plans are approved by the court.

The plans call for a discharge of the debt over 10 years, in accordance with a schedule that pays a total of €100,000 through each of the first two annuities, with annuities equal to 5% of the debt being paid in years three through nine and 65%, minus the amounts paid under the first two annuities, in the 10th year.

Receivables lower than €500 will be repaid without any discount or delay immediately upon the completion of the plans.

Debtholders who refuse the proposal to settle their liabilities will be reimbursed in accordance with the 10-year schedule.

For Rallye creditors accepting a liability clearance proposal, reimbursement will be made in advance, if necessary, through the proceeds of pledged securities accounts, with a commitment to repay 85% on the third anniversary of the plan and the balance on the fourth anniversary.

Secured creditors who have accepted this proposal will be asked to accept the creation of a second-ranking securities account for Casino 9 shares. The company said this could allow for the establishment of financing for early redemption and/or redemption that would be proposed as part of a modification of the safeguard plan in the same terms to all the creditors holding receivables admitted to the debt of Rallye and not benefiting from pledges of securities accounts tied to Casino shares.

Holders of secured debt by pledges on shares of Rallye subsidiaries other than Casino will receive repayment according to the 10-year schedule or repayment in advance, if necessary, at the end of the plan by transfer of units subject to a pledge.

Holders of unsecured claims against these subsidiaries will receive payment in accordance with the 10-year schedule.

The last annuity of Rallye’s scheduled backup plan may, if necessary, be reimbursed by way of refinancing.

The proposals for the settlement of the companies’ debt will be circulated to creditors in the coming weeks, with a view to receiving their acceptance or rejection of the proposals.

The companies said their objective is to have the safeguard plans approved by the Commercial Court of Paris no later than the end of the first quarter of 2020.

Rallye is a Paris-based distributor of food and sporting goods products.

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