Codere SA (CDR), the Spanish gaming company negotiating a 1.1 billion-euro ($1.5 billion) debt restructuring, said it has less than 24 hours to reach an accord with bondholders and neither side can guarantee a deal in time.
In Codere’s latest restructuring proposal, bondholders would get 70 percent of the company’s equity while shareholders would hold 30 percent, the Madrid-based company said in a filing. Noteholders want an 82.5 percent stake in the company, offering 14.3 percent to Chief Executive Officer Jose Antonio Martinez Sampedro and family members and 3.2 percent to other shareholders, according to the statement.
Codere, which has reported eight consecutive quarters of losses, is trying to avoid starting insolvency proceedings after seeking preliminary creditor protection in January. The co-founding Martinez Sampedro family is fighting to retain as much control as possible in the company hurt by recessions and higher taxes in its European markets as well as stricter gambling regulations and smoking bans in Latin America.
The company’s lenders and a majority of bondholders agreed yesterday to continue talks for 48 hours without demanding repayment, Codere said in a statement. It had until May 10 to work out a deal or start insolvency proceedings after winning its first standstill period on April 30.
Codere’s stakeholders are working to reach a consensual agreement in the allotted time but cannot guarantee one will be reached in time, the company said in the statement.
To contact the reporter on this story: Katie Linsell in Madrid at firstname.lastname@example.org