Codere SA, the Spanish gaming company that is attempting to restructure 1 billion euros ($1.4 billion) of debt, said it will miss a bond coupon payment.
The operator of betting shops and race tracks from Italy to Argentina won’t pay the 31 million euros due on its 8.25 percent notes Dec. 15 and will use a 30-day grace period, according to the regulatory filing today. Codere also has more than 130 million euros of loans due for repayment on Jan. 5.
Codere’s founding Martinez Sampedro family is fighting to keep control of the company that’s reported losses for seven straight quarters. Creditors including M&G Investment Management Ltd. and Silver Point Capital LP are among bondholders in talks with the company and are seeking to swap their debt for equity.
The company said last month it had 95.4 million euros of cash, with earnings crimped by recessions and higher taxes in its European markets and stricter gaming regulations and smoking bans in Latin America.
Adam Weiner a spokesman for Silver Point at Kekst & Co. declined to comment on the debt negotiations. David Butcher, a spokesman for M&G in London, declined to comment.