The Iberian gaming firm, Codere, is progressing towards the completion of its debt restructuring strategy by November 5th, transferring ownership to its lenders.
Initially presented in April, the strategy aims to prevent the business from insolvency by shifting control to its debtors, an action that would have led to the dissolution of its parent entity, Codere SA.
A fresh holding corporation will be formed, with debtors possessing a 95% share, while current stakeholders will maintain the remaining 5%.
Through the debt-for-equity exchange, bondholders will acquire newly issued notes and have until October 18th to approve the agreement.
In total, the agreement will impact securities dealings amounting to €1.15 billion ($1.3 billion).
Codere emphasized that the agreement was essential for sustaining the company until all its locations could resume operations and received shareholder endorsement in a vote conducted in May.
The agreement provided the company with a cash infusion of €225 million, with €30 million disbursed immediately and €70 million disbursed before the end of May.
The remaining €125 million will be supplied closer to the conclusion of the restructuring procedure.
The company has faced challenges recently, with its stock value plummeting to €0.89 after announcing its entry into administration, partly attributed to a 57.2% decline in revenue in March due to Covid-19 closures.
This recent progress indicates that the company’s restructuring is advancing as originally planned.
At the beginning of the year, Codiller projected a finalization of the agreement by the early part of the last quarter.
