Codere Chairman pursues final options to save the company
Codere SA is pursuing emergency financing options having failed to convince investors to back its business recovery plans, according to Spanish business news source La Razon.
The embattled Bolsa Madrid gambling group has failed to secure a further €100m credit line to keep it’s Spanish and LaTam retail business units afloat during lockdown.
On the edge of bankruptcy, Codere is currently maintaining its business through a €130 million credit facility which is set to run out by the end of July trading.
Dire prospects see Codere face higher % interest charges on its €800 million corporate debt, having postponed April repayments in order to secure new financing options.
Meanwhile, financial advisor Bank of America has failed to renegotiate debt maturity terms with Codere’s US bondholders Silver Point and Abrams Capital.
Bolsa Madrid eyes have turned to Codere Chairman Norman Sorensen’s next actions to raise immediate capital.
In a race against time, Codere could secure a further debt payment amnesty with a view to selling its individual South American business units (Argentina, Mexico and Uruguay).
However, a LaTam sale option would be undertaken under unfavourable terms, following currency collapses recorded across its entire South American portfolio.
Further options reported by La Razon include that Codere has engaged in ‘several discussions’ with US private funds Pimco and Carlyle Group, seeking to take over the firm’s debt holdings.
Source: SBC News
