Grupo Codere needs €100m in capital
The Spanish gambling group is facing “a probable insolvency situation”.
Spain.- Grupo Codere needs more financial help. Investors have approved an updated reorganisation and refinancing plan that includes a move to raise an additional €100m in capital due to a “probable insolvency situation”. Meanwhile, Alberto González del Solar and Alejandro Rodino have been removed from their positions as joint CEO.
The company says it’s achieved the initial goals of the recovery programme it established after the impact of the Covid-19 pandemic, with a strong recovery in Argentina and Italy as well as Spain.
However, the company is facing liquidity pressures due to higher cash repatriation expenses amid government controls in Argentina and tougher competition in Mexico and Panama. Inflation is also proving to be a challenge, increasing operating costs.
The additional liquidity will be raised through the placement of First Priority Notes. The company has also announced an operational review and capital structure adjustments. It believes that with these measures it can still return to pre-pandemic revenue and gross operating profit by 2025.
The board said: “The viability of the group requires the deferral of payments and the obtaining of new money that will be used to undertake the necessary investments to execute the updated Business Plan and meet debt interests.”