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Bond Market News
Casino Guichard’s CDS Holders to Get Payout
September 7, 2023
Casino Guichard’s CDS holders are set for a payout, as ruled by the Credit Derivatives Determinations Committee (CDDC). The committee ruled that Casino failed to pay a coupon due on its bonds due in 2026 on July 17 and did not pay the amount within its 30-day grace period. They said that as per ISDA definitions, a failure-to-pay credit event had occurred. This comes after months of speculation whether the non payment of coupons amounted to a default on its CDS. The net notional outstanding amount of CDS contracts was $360.7mn, as per Bloomberg, in the week ending August 18. Casino’s liquidity has been depleting with a cash burn of €700mn in the first quarter. Early last week, rating agencies Fitch and S&P downgraded the issuer to RD and D as they said a default had occurred under the 2026s.
Casino’s bonds are trading at deeply distressed levels of ~2-3 cents.
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