Shares of Casino Guichard-Perrachon experienced a boost in Monday morning trading following a French court's decision to temporarily halt payment obligations pertaining to certain notes issued by the troubled French grocer.
At 0925 GMT, Casino shares saw a 5.2% increase, reaching EUR3.65.
Casino announced late Friday that the president of the Paris Commercial Court had made this significant decision, with a final ruling expected in September.
The grocer has been grappling with high debt and a decline in market share within its home country for several months. Earlier this year, Casino engaged in discussions with creditors to secure enough liquidity to sustain its operations. As of the end of June, Casino's net debt amounted to EUR6.1 billion ($6.59 billion), up from EUR5.1 billion at the end of March.
In order to reinforce its capital base and restructure its debt, the group recently reached a preliminary agreement with a consortium led by Czech billionaire Daniel Kretinsky.
The consortium offered to inject EUR1.20 billion in new equity into Casino, reserving EUR275 million for both creditors and existing shareholders.
