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Codere Bondholders Said to Propose Takeover for Debt Reduction

Aug. 22 (Bloomberg) -- Bondholders to Codere SA, the Spanish gaming company that missed a coupon payment this month, are proposing to take over the company in a restructuring plan, according to a person with knowledge of the matter.

A group of creditors offered to forgive about 350 million euros ($466 million) of its 1 billion-euro debt in exchange for 95 percent of the company’s shares, said the person, who asked not to be named because the matter is private.

Codere skipped an interest payment on its $300 million of 9.25 percent bonds on Aug. 15, activating a 30-day extension. The company announced a 99 million-euro credit line from Canyon Partners LLC and Blackstone Group LP’s GSO Capital Partners LP last month that must be repaid if Codere repays any bond coupons.

Italo Durazzo, a Madrid-based spokesman for Codere, declined to comment on the restructuring plans.

The proposal was reported earlier by CapitalStructure.

Codere is 51 percent-owned by Masampe Holding BV, a company controlled by members of the founding Martinez Sampedro family, according to a statement on its website citing December 2012 data. The remainder of the shares are listed on the Madrid stock exchange and owned by the Martinez Sampedro family, board members and management.

To contact the reporter on this story: Julie Miecamp in London at jmiecamp@bloomberg.net

To contact the editor responsible for this story: Faris Khan at fkhan33@bloomberg.net

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