France-based supermarket chain Groupe Casino (Casino) has announced that it needs at least €900m ($982m) of equity contribution to carry out its restructuring plan.

Casino intends to sign an agreement with its creditors on restructuring its financial debt by the end of July. 

In order to strengthen liquidity, the company is seeking to extend residual debt. This will give them enough space to implement their plan. 

Last month, Casino commenced a court-backed negotiation process with its creditors to conduct the discussions within a legal framework.

The group and its €6.4bn debt holders also started discussions this month regarding its effort to stay in business through sales and the company’s deal with the government to defer taxes and social security liabilities.

Furthermore, Casino has modified its strategic plan to convert its entire unsecured debt into equity to frame the firm’s finances more sustainably.

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Last week, Casino announced the divestment of its residual equity stake in Brazilian retailer Assai to raise around €326m after costs and taxes.

They further stated that there should not be any liquidity issues until the end of the 2023 financial year, assuming the persistence of the standstill of financial charges and debt repayments following the conciliation period and in view of the sale of some businesses to Les Mousquetaires.

In a statement, Casino said: “Creditors who have not already done so have been invited to organise themselves to facilitate further discussions with the group.”