Codere, a multinational group devoted to entertainment and leisure in Latin America and southern Europe will hand over control to its creditors as of November 5.
This will happen in a debt-for-equity agreement that will change the terms of Codere’s note. To become final all noteholders have until October 18 to agree to the restructuring.
The company has had problems with debt for two years when currency fluctuations in the Latin American market prompted it to seek a refinancing deal. The pandemic exacerbated Codere’s financial problems leading to a 57.2 percent drop in revenues in 2020.
Under the restructuring, Codere’s creditors will be given 95 percent of the company with the existing shareholders given the remainder.
Also as part of the deal, Codere will spin off its online business, which will go public on Nasdaq through a special purpose acquisition company (SPAC.)
