Codere has gained more time to negotiate with creditors to reduce its €1.1 billion debt load and avoid seeking bankruptcy protection.
Lenders agreed to continue talks for 10 days, the Madrid-based gaming giant said in a statement.
“The company expects to continue the productive discussions with all creditors during the standstill period in order to achieve a consensual restructuring of Codere’s debt,” according to the statement.
Codere has reported eight consecutive quarters of losses, with earnings hurt by recessions and higher taxes in its European markets, as well as stricter gambling regulations and smoking bans in Latin America.
The company and its bondholders have been wrangling over a restructuring since January, with the Martinez Sampedro family fighting to retain as much control as possible of the company they co-founded in 1980.
One group of lenders has rejected Codere’s latest proposal, which included a five-and-a- half-year moratorium on interest payments and no equity stake for creditors, and the company has turned down a bondholder plan that included canceling €365 million of debt and injecting as much as €400 million of new money in exchange for 96.8 percent of the company’s equity.
Brothers Jose Antonio Martinez Sampedro, Luis Javier Martinez Sampedro and Encarnacion Martinez Sampedro own 68.5 percent of Codere, according to regulatory filings.
