Shareholders of Spanish-based Codere, a multinational group and leader in the private gaming industry, have agreed to a restructuring deal that will put the business under a holding company controlled by its creditors.
Bondholders will own 95 percent of the company and shareholders the remaining 5 percent. However, they will receive warrants granting them as much as 15 percent if the company’s valuation ever tops €220m over the next decade.
The company will be allowed to raise money via a bridge loan to allow it to reopen its venues.
The company issued a statement: “With this process Codere considers, based on current estimates, that it can ensure the viability of the company, thanks to the trust of its bondholders in the perspectives of the group, its management team and the more than ten thousand employees that make up the organization.”
Ninety-five percent of bondholders must endorse the deal before the restructuring can move forward.
