Codere hands control to creditors

The Spanish gaming company has completed its restructuring, handing control of the new entity to creditors. 

Spain.- Codere has completed its restructuring with the creation of a new entity owned by its creditors, two weeks later than planned. Under a debt-for-equity agreement proposed in April, control of Codere has been passed to the holding company Codere New Topco SA. 

Codere bondholders have a 95 per cent stake in the new entity. The company’s previous owners hold on to a 5 per cent stake and have an option to receive up to 15 per cent of the proceeds from any possible future sale. Codere SA will call a general shareholders’ meeting in December to approve a liquidation process.

Codere’s online division will be split from the business and listed on the Nasdaq stock exchange through a merger with special purpose acquisition company DD3 Acquisition Corp.

The agreement reached in May involved a new investment of €225m to see Codere through its recovery from the impact of the Covid-19 pandemic on its operations, particularly in Latin America. Almost half of the investment has been provided already.

Meanwhile, €350m of debt from existing senior bonds has been converted into equity. See also: Codere revenue rises but losses continue