(Bloomberg) -- Holders of credit insurance on Casino Guichard-Perrachon SA are set to receive a big payout after the company skipped interest payments while it was negotiating a restructuring with its creditors. 

The French grocer’s unsecured bonds were valued at 1 cent on the euro in the final auction to settle the credit-default swaps, according to Creditfixings. The value of the payout is 100 minus the value of the bonds, so holders of the default protection contracts could get 99% of the bonds’ face value in this case.  

Casino has been in court-supervised talks with creditors since late May to restructure the balance sheet and the business. Under an agreement reached with a group of investors led by Czech billionaire Daniel Kretinsky, all of the company’s €3.5 billion ($3.72 billion) of unsecured debt and more than €1.3 billion of the secured debt will be converted into equity. 

Following the conversion, unsecured bondholders stand to control 1.8% of the company’s equity. Bondholders with CDS contracts, meanwhile, stand to make more money by delivering their notes in the auction and getting paid the default protection.

The grocer had until the end of this month to reach an agreement with its creditors, but got a one-month extension to get all the lock-up agreements signed. After that, it will enter an accelerated safeguard process in which it could approve the plan with the support of secured creditors and cram down dissenting creditors. 

These were the deliverable obligations for the auction:

Read more: Casino CDS Holders Set for Payout After Credit Event Ruling 

(Adds with details from final auction.)

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