The auction to determine the credit default swap payouts over the safeguard proceedings of Rallye was held on Thursday, and gave protection buyers an 87.5% payout. The supermarket holding company’s bonds had slid roughly five points in the week before, to trade at around 15 ahead of the auction, but settlement interest was all on one side, pushing the final price to 12.5.
Rallye, plus associated holding companies also controlled by Jean-Charles Naouri, entered French creditor protection proceedings at the end of May, triggering a restructuring credit event for CDS referencing its debt.
Casino, the French supermarket chain chaired by Naouri and majority-owned by Rallye, has continued to operate undisturbed. Its shares