The Paris Commercial Court on Monday gave the green light to Czech billionaire Daniel Kretinsky's plan to bail out French retailer Casino, which is in serious financial difficulties, under an accelerated safeguard procedure, said the consortium made up of EP Equity Investment, Fimalac and Attestor.

"The consortium (...) is delighted with the Paris Commercial Court's decision to approve its proposal for an accelerated safeguard plan to take over Casino," it said in a statement.

"From April onwards, the management team, led by CEO Philippe Palazzi, will implement an ambitious plan for reorganization, investment and modernization to underpin the development of the Group's banners", it added.

Casino, France's seventh-largest supermarket group in terms of market share, has found itself on the verge of insolvency after years of debt-financed acquisitions and recent losses of market share to rivals.

Current shareholders in the Saint-Etienne-based group will be massively diluted as part of the restructuring operation, which will put an end to Jean-Charles Naouri's thirty-year reign over the company, which he controlled via his Rallye holding company.

The consortium led by Kretinsky will own and control 53.7% of Casino's share capital as part of the bailout agreement, which includes the injection of 1.2 billion euros of new money into Casino, as well as a 6.1 billion euro reduction in the group's debt.

The Paris Commercial Court had extended the company's accelerated safeguard period until February 25.

Casino, which is seeking to stem the losses of its major hypermarkets and raise cash, has concluded agreements

last month

with Auchan Retail and Groupement Les Mousquetaires, parent company of Intermarché, to sell them 288 stores in France.

In early February, Groupement Les Mousquetaires took over from Carrefour for the acquisition of 25 stores.

The sale, which prompted union fears of a possible break-up of the group, should leave Casino with the upmarket Monoprix chain, as well as Franprix, which also focuses on city-center stores.

On the Paris Bourse, Casino shares climbed 3.5% after the rescue plan was given the go-ahead. (Written by Dominique Vidalon, Diana Mandia and Blandine Hénault for the French version, edited by Sophie Louet)