Groupe Partouche reaches deal with banks

PARIS Oct 23 (Reuters) - French casino operator Groupe Partouche (PARP.PA) said on Friday it had reached a preliminary deal with banks over the reorganisation of its debt, and added it would divest assets to speed up the repayment. Partouche chairman Patrick Partouche said in a statement that the agreement preserved the group's independence. "However, in order to speed up the repayment of this debt, Groupe Partouche has put in place an asset divestment plan," he added. Partouche said casino operators had been hit by new regulations, including the smoking ban, in recent years, and these, combined with the financial crisis, had hurt the group's profitability.

A cost-cutting plan it started in October 2008 had limited the impact of a drop in activity on operating profit, he added.

The group's first half sales fell 10.8 percent to 222.8 million euros ($334.3 million). (Reporting by Helen Massy-Beresford)