French food retailing group Casino, which recently announced a link up with the troubled Dutch food retailer Laurus, has signed the relevant credit agreements with the banks. The agreements assure a maximum credit facility of 950m [euro].

Laurus has been in serious trouble for several years now, with things coming to a head following a failed restructuring programme.

Laurus, which operates many different formats in the Netherlands, had undertaken to convert to a sole Laurus format, a move which pushed the supermarket operator to the brink, and failed to lure back consumers.

SAFEGUARD

French number two Casino agreed a package with Laurus and the banks to safeguard the future of the Dutch concern.

Some 400m [euro]-worth of new Laurus shares were issued, of which Casino took up 200m [euro]. Casino's stake in Laurus is 38.6%.

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