Codere negotiating “global recapitalization”

Codere continues to work to stabilise its businesses.
Codere continues to work to stabilise its businesses.

The Spanish and Latin American gambling group is speaking with existing bondholders.

Spain.- The board of Grupo Codere SA has said that it is in “advanced negotiations” with bondholders for a “global recapitalization” to improve capital structure for its 2023-to-2027 recovery strategy. Investment bank Houlihan Lokey and law firm Allen & Overy are advising.

The board said the recapitalisation was needed to “clean up the company’s balance sheet and allow Codere to focus on the successful implementation of its business plan, while improving its financial capacity to drive its long-term growth strategy.” It did not reveal how much funding it seeks to raise.

The move comes after Codere raised $100m last year to head off insolvency and stabilise its units in Latin America. It said that it had resolved operational issues in Argentina and Mexico, resulting in statutory losses of $160m in the first half of last year.

Codere says it expects to generate a gross profit by 2025. It has said that it has no intention to sell any of its international units, which operate in Italy as well as in the Latin American markets of Argentina, Colombia, Mexico, Panama and Uruguay.

Codere Online, which split off from the business, reported break-even EBITDA in Q3 for the first time since its 2021 listing on the NASDAQ through a SPAC deal with DD3 Acquisition Corp II.

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