Codere Restructures Euro 1.1 Billion Of Debt

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

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The man with the plan here at Casinomeister. Bryan Bailey has been running Casinomeister since its launch in June of 1998. He has watched the industry grow from its primeval stage to what it is now. The Meister has attended nearly 100 conferences in the past 20 years and has either been a speaker or a panel moderator for at least 60 events. He has always been an advocate of fairness and reason and is known to like German beer, a good Scotch, and astrophography.
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