Codere Says No Restructuring Deal Reached With Bondholders

Codere SA said it hasn’t reached an agreement with creditors for the restructuring of 1.1 billion-euro ($1.5 billion) of the Spanish gaming company’s debt.

The failure to meet a deadline for a deal today means that it hasn’t complied with conditions to extend a 127.1 million-euro loan to April 15, Madrid-based Codere said in a statement. The company continues to negotiate with bondholders to seek a restructuring deal, it said in a separate filing.

Bondholders submitted an offer to restructure Madrid-based Codere’s debt on Feb. 2 and gave it until 5 p.m. in London today to accept their plan, according to a statement yesterday. The gaming operator’s directors met to review the proposal and didn’t approve a deal, according to people with knowledge of the talks, who asked not to be identified because they are private.

Italo Durazzo, a spokesman for Codere, declined to comment on the company’s decision.

The proposal would give creditors an 82.5 percent stake in the business in exchange for cutting the debt of the company, which manages betting parlors and race tracks in Spain, Italy and Latin America. Codere’s founding Martinez Sampedro family is fighting to retain as much as possible of the business and the board previously offered an alternative proposal in which shareholders keep majority control.

Codere, which sought preliminary creditor protection on Jan. 2, was due to repay the loans today if it didn’t reach agreement with bondholders, according to the terms of the facility.

The company said it will file for full protection from creditors if it fails to reach an agreement. Bondholders may seek to implement their plan in the U.K. courts, according to a statement yesterday.

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