Rallye - Sauvegarde extended and derivatives under control

All,

Rally’s press release heralds good news - within Sauvegarde.

1) Rallye’s Sauvegard has been extended by 6 months. The same goes for Cobivia and HMB. Alpetrol will presumably receive its extension on December 17th.

2) Rallye have struck an agreement with all derivatives counterparts of E231m (which were secured by disproportionate pledges over 8.7% of Casino Stock) to waive their rights and accept two new and relatively short term maturities instead: 50% by 30th June 2021 and the remainder by 31. December 2022, earning PIK interest only.

Further conditions include:

- Additional security over E30m of cash.

- Any dividends by Casino will be immediately and automatically allocated to repayment.

- Rallye acknowledges the applicability of laws under the French Monetary and Financial Code that provide for the separability of the pledged assets (the shares) even under Sauvegarde. This in turn allows the involved institutions to impose the following covenants:

- Entry of Rallye into Redressement Judiciaire, or otherwise irregularities around the Safeguard process or plan

- Cross Default with Casino above a E15m threshold.

- Cross Default among each other wrt. to any derivatives exposure at Rallye, HMB, Cobivia, Fonciere Euris and Finatis.

- An undisclosed coverage ratio of Casino Shares / Net Debt.

- Our favourite: another extensive change of control clause for all of the involved topcos, naming Jean-Charles Naouri himself in conjunction with his family.

3) The agreement above has been mirrored for the E84.8m derivative transactions at Fonciere Euris over 9.5m = 18.2% of Rallye shares and the E15m at Euris over 487.5k = 8.6% of Finatis shares.

4) Each of the press releases concludes with the statement that Rallye along with all other involved entities are working on receiving approval for a Sauvegarde plan by end of Q120. However this seems to be more of a lip service to the courts, as a second extension is almost certain to be granted, setting the end game for December 2020.

Wolfgang