Spanish gaming giant Codere has not reached an agreement with its creditors for the restructuring of €1.1 billion (US.5 billion) of debt and therefore has not complied with conditions to extend a €127.1 million loan to April 15.
Bondholders had submitted an offer to restructure the Madrid-based operator’s debt on February 2, but Codere’s directors rejected it. A spokesman for the company declined to say why, but the proposal would have given creditors an 82.5 percent stake in the company in exchange for forgiving a large portion of the debt, a prospect that apparently was resisted by the founding Martinez Sampredro family, which is fighting to retain as much of the business as possible.
Codere, which sought preliminary protection from creditors on January 2, said it will file for full protection if it fails to reach an agreement.
Bondholders, meanwhile, said they may take their case to the courts.
Codere’s far-flung operations include betting and machine gaming parlors and racetracks in Spain, Italy and Latin America.
