EMEA DC Meeting Statement - 5 June 2023
The EMEA Credit Derivatives Determinations Committee (the DC) met on 2 June 2023 to discuss whether or not a Bankruptcy Credit Event had occurred with respect to Casino Guichard-Perrachon SA (the Reference Entity).
In making its determination, the DC considered previous DC determinations in respect of Selecta Group B.V., Matalan Finance plc, Thomas Cook Group plc, Abengoa S.A., Rallye SA and Thomson SA (relevant meeting statements are available on the DC website).
The DC considered the features of the French conciliation procedure. In particular, the DC noted that conciliation is designed to result in full consensual agreement with creditors. To the extent partial agreement is reached, the DC noted that such agreement does not bind non-consenting creditors, and separate procedures would need to be opened in order to do so. The DC noted that a conciliation does not result in a general stay on enforcement nor impose an automatic moratorium. The DC further noted that while a company in conciliation can apply for additional relief, such relief is not automatic as a result of the conciliation and requires a separate application.
The DC noted that as a matter of French law, the opening of a conciliation procedure would result in an override under French law of events of default in the debt instruments of the Reference Entity which were linked to the opening of the conciliation. The DC noted that such features would affect the ability of creditors of the Reference Entity to accelerate the debt. However, taking into account all the features of conciliation, the DC was of the view that such relief alone was not sufficient to qualify as "similar relief under any bankruptcy or insolvency law or other law affecting creditors’ rights" for purposes of Section 4.2(d) of the 2014 Definitions.
Accordingly the DC determined that a Bankruptcy Credit Event had not occurred.
Request Accepted by DC
Pending DC Consent