Codere completes financial restructuring of business
Madrid-based firm transferred to new holding company after Covid-19 decimates turnover
Spanish gaming operator Codere has completed its financial restructuring, resulting in the business being transferred to a new holding company, Codere New Topoco SA.
The restructuring was deemed necessary in order to keep the business sustainable after its venues closed amidst Covid-19.
The move sees 95% of the operating division transition to the new holding company owned by Codere’s bondholders, while the remaining 5% will be held by Codere shareholders in the form of warrants issued from the new parent company.
Codere has been able to restart operations in all jurisdictions after Argentina opened in July, resulting in an uptick in turnover.
As a consequence, the Madrid-based firm has stated that “the business continues to show strength and rapid recovery … and expects to reach 80% of the turnover in of 2019.”
The agreement has seen €225m injected into the group and capitalised more than €350m in debt, with an extension of debt maturities to September 2026 and November 2027 also arranged.
On 10 November, Codere posted a 8.5% rise in revenue for the first nine months of 2022 despite racking up net losses of €243m.