The restructuring agreement proposed by Codere's creditors, under which the activities will be brought under the new holding company, has been approved by the shareholders of the Madrid-based gambling operator.
The proposed deal includes provisions enabling Codere's creditors to take full control of the company's operations after the restructuring plan last month obtained approval from most of the casino's bondholders.
”Thanks to this process, Codere believes, based on current estimates, that it can ensure the company's profitability through the trust of bondholders in the prospects of the group, its management and the more than ten thousand employees that make up the organization. . "
The restructuring, presented in April and already approved by the Codere board of directors, establishes a new economic entity in which Codere bondholders will have 95% while the rate remained 5% will be left to existing Codere shareholders. In the case of a new business, debt 367 million will be capitalized in equity.
Codere shareholders will receive further compensation in the form of warrants of up to 15% new holding company, feasible in the event of Codere's market valuation for the next 10 years exceeds EUR 220 million .
Due to the temporary closure of some of its gaming outlets in major operating markets, Codere will also need to raise another 225 million to ensure the sustainability of its business. The amount will be increased by a bridging loan of EUR 100 million and 2021 million senior bonds, while debt repayments maturing in 2021 have been deferred to
initially, then 2026.
The contract still needs to be signed by the creditor
Whilst the group of ultra-senior bondholders and senior bondholders are already supported, the restructuring agreement still requires the formal approval of at least 75% of Codere's creditors before a restructuring plan can be initiated.
Earlier this month, a filing with the National Securities Markets Commission of Spain revealed another scandal at the casino operator after Codere's family of founders, Martinez Sampedro, demanded that regulators force U.S. investors in the company to completely buy a family stake. for price € 900 million .
The notification stated that the requested price was for the family 14% participation in Codere was seen as appropriate compensation for the circumvention of minority shareholders' rights in 2018, when US investors failed to submit an offer to minority shareholders when they reached 30% shares in the company and later deprived them of their voting rights.