Founding family loses control of company
Embattled Spanish gaming firm Codere will restructure Euro 1.1 Billion of debt and avoid insolvency following an agreement with creditors.
Codere filed for preliminary creditor protection in January and had until this week to reach an accord or start insolvency proceedings.
Part of the debt refinancing deal will see founders, the Martinez Sampedro family, give noteholders a controlling stake in the company of 97.8 percent, leaving shareholders with 2.2 percent.
As a condition of the agreement, Codere will be delisted and Jose Antonio Martinez Sampedro and Luis Javier Martinez Sampedro will have to buy 19.6 percent of shares from noteholders at a later stage.
Codere said in a statement: "It is of critical importance that Jose Antonio Martinez Sampedro and Javier Martinez Sampedro invest in restricted shares of the restructured Codere in order to align their economic interests on a permanent basis. This will maintain continuity of ownership in light of the institutional and governmental relationships considered necessary to the successful continuation of the group's licensed businesses."
Online Casino News Courtesy of Infopowa