Codere SA (CDR), the Spanish gaming company in talks to restructure 1.1 billion euros ($1.5 billion) of debt, won’t make an interest payment on its bonds, according to a filing.
The company had 30 days grace period to make a 31 million-euro interest payment on its 8.25 percent bonds initially due Dec. 15. A default on the 760 million euros of bonds may give holders the right to demand immediate repayment.
Codere continues negotiations with bondholders to restructure its debt, the Madrid-based company said in the statement.
The operator of betting shops and race tracks from Italy to Argentina sought preliminary creditor protection Jan. 2 giving it as much as four months to reach a deal with creditors. GSO Capital Partners LP and Canyon Capital Partners LLC this month allowed the company an extra 30 days to repay 127.1 million euros of loans.
Codere’s founding Martinez Sampedro family is fighting to retain as much control as possible of the company that’s reported losses for seven straight quarters. Its earnings have been hurt by recessions and higher taxes in its European markets and stricter gambling regulations and smoking bans in Latin America.
The company’s 8.25 percent bonds have dropped about 5 cents on the euro to 50 cents since Jan. 9 as the bond coupon payment deadline loomed. A Jan. 10 newspaper report said the Argentine government may seize some of the company’s assets if hedge funds end up controlling the company. Italo Durazzo, a Madrid-based spokesman for Codere, declined to comment on the newspaper article.
-- Editors: Tom Freke, Faris Khan