Plot around a Spanish gambling operator Codere thickened after the family of the company's founders demanded that their minority stake be taken over by the company's US investors as compensation.
Family Martinez Sampedro appealed to National Securities Market Commission in Spain, will require the regulator to impose a family-owned gambling company in difficulty on the remaining US investors 14% rates for the price at least € 900 million .
Founding family reports U.S. investor group took control of Codere through bankruptcy restructuring in 2018 renegotiating EUR 1 billion of the company's debt, "deliberately missed" a takeover offer to minority shareholders of the company when they acquired a 30% stake and breached takeover laws in the Spanish market.
Mar The tinez Sampedro family sees the proposed € 900 million buyback as adequate compensation for the denial of voting rights by US investors who have resigned from representing the family on the board after restructuring.
According to Codere's last filing to the regulator, the company's largest shareholder is Edward Arnold Mule with 23. 36% rates, followed by two American funds, Silver Point with 21. 79% and M&G PLC with 20. 97%.
The family claim was denied by those investors who said their combined acquisition, which saved the company from bankruptcy, must have burdened creditors with liabilities to the company's shareholders, but the bailout claim seems far - collected amid recent struggles at Codere.
The Spanish operator, besieged with outstanding debt and solvency problems, had to agree a deal with its c editors last month, essentially going into liquidation. Codere agreed to switch 350 million debt to equity in exchange for € 225 million new cash from existing shareholders.
Debt repayments maturing this year will be delayed until 2023 and then again until 2026 with Codere to release € 100 million new senior bonds to be transferred in 2 tranches before the end of May, the first of which will concern € 30 million .
Earlier a € 250 million the loan allowed a distressed gambling operator to continue operating in Latin America.
The restructuring, which see Codere's creditors control of 95%, leaving the remaining 5% to shareholders, is expected to be completed by the beginning of Q4 2021. Stakeholders will also receive warrants for a maximum of 15% future valuation in the event that the company is sold in subsequent years.