Spanish gaming giant Codere has warned it will file for creditor protection if a suitable agreement isn’t reached with bondholders on loan repayments.
With the founding Martinez Sampredro family fighting to retain as much control as possible, the ailing company sought preliminary protection on January 2, giving it as much as four months to reach an agreement on a restructuring of €1.1 billion of debt. The company missed a coupon payment on €760 million of notes on January 15 after a 30-day grace period expired.
Codere has about two weeks to complete a deal with 50 percent of bondholders before it must repay a €127.1 million loan to private-equity funds that include GSO Capital Partners and Canyon Capital Partners. Bondholders have submitted five proposals for the company’s restructuring. Codere has countered with four of its own.
The company has lost money for seven straight quarters as higher taxes, stricter gambling regulations casino closures and smoking bans have taken a toll of its operations in Spain, Italy and Latin America.
