Real estate branch Accor says it will not use the loan guaranteed by the French state
PARIS (Reuters) – AccorInvest, real estate subsidiary of the French hotel group Accor ACCP.PA, said Thursday that he had explored the possibility of using a loan program guaranteed by the French government, but had decided not to pursue an aid program for the time being.
BFM Business previously announced that AccorInvest was in talks with several banks for a government guaranteed loan of 400-500 million euros (435-544 million dollars).
AccorInvest owns and rents hotels and is only owned by a minority in Accor, which operates brands like Ibis and has said it has enough cash to weather the crisis, even though bookings have fallen and travel has declined. are arrested.
“AccorInvest has examined the possibility of using the government guaranteed loan program and has decided not to pursue this approach at this time,” the company said, without giving further details.
The loans, which pass through commercial banks, come with guarantees covering up to 90% of the amount borrowed in certain cases, including the Air France KLM bailout, according to the negotiated agreement.
BFM Business had indicated that in return for the loan, the banks would ask AccorInvest to commit to rebalancing its accounts by the end of the year via a capital increase to be subscribed in particular by Accor and by the real estate company and American investment Colony Capital. CLNY.N. Accor said earlier that there was no capital increase on the cards.
The government introduced the secured loan program as one of several measures to help businesses hit by the coronavirus crisis.
Consumer electronics distributor Fnac Darty FNAC.PA became the first large company to operate it in mid-April, securing a loan of 500 million euros.
France has rolled out a € 110 billion package to support the economy that also includes cash distributions for smaller businesses, tax and payroll tax deferrals and state-subsidized leave.
Reporting by Blandine Henault and Sarah White; Writing by Benoit Van Overstraeten; edited by John Stonestreet, Kirsten Donovan