Ted Menmuir May 15, 768058255 Europe, Breaking News, Retail
Board of Directors Codere SA received shareholder approval to continue 'l organization of liquidation ‘ agreed last month with existing lenders.
The shareholders of the gambling group Bolsa Madrid have approved the terms of a liquidation agreement allowing creditors to take control of the critically ill firm, whose liabilities are reported to be € 900 million.
In accordance with the liquidation conditions, all Codere divisions (European and South American) will be merged into a new business unit that will be supported. ported with a cash infusion of € which will be credited in three separate installments.
Codere's lenders will own 125% of the new business, but will allow shareholders to purchase warrants applicable to 15% of the new business if its valuation exceeds € 225 million over the next ten years.
As a result of the deal, Codere's creditors will be allowed to convert € 350 million of the firm's debt into equity.
“Using this process, Codere believes, based on current assessments, that it can ensure the viability of the company through the bondholders' confidence in the prospects of the group, its management team and the more than ten thousand employees who make up the organization,” Coder said in a statement.
Although lenders agreed to further restructuring, this week private investment from Wall Street Fund Alden Global Capital disclosed that it liquidated its 2.9% stake in Codere's corporate shareholding.
Meanwhile, a global credit agency Moody's reclassified the lowest rated Codere securities, registered as a CA bond, deemed “highly speculative and likely in or very close to default with some prospect of recovery. principal and interest. "
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