Codere hires legal firms to support long-term growth

Codere has hired Holihan Lokey and Allen & Overy as financial and legal advisors, respectively, as the firm looks to strengthen its capital structure and drive growth.

The operator said it was in advanced talks with its main bondholders in order to finalise the commercial terms of a “global recapitalisation”.

Investment banking firm Houlihan Lokey and law firm Allen & Overy have been brought in to oversee the process.

Codere said the pair would “assist the group in pursuing a holistic recapitalisation to enhance the group’s capital structure, drive future growth and allow Codere to focus on the successful implementation of its business plan”.

The retention of the pair follows Codere’s October 2023 update in which it delivered an overview on ongoing regulatory issues in Argentina and Mexico, with a €50m provision having been baked in over tax disputes in the latter.

Codere made the provision of €50m (GBP) in its financial year 2022 accounts due to a “potential liability of Codere Mexico arising from a dispute with the Mexican tax authority” following the merger of Complejos Turísticos de Huatulco and other Codere Mexico subsidiaries in 2008.

The group’s Argentine issues relate to closures of the firm’s retail operations in recent months.

In a statement, the firm said: “Having completely resolved the operational issues in Argentina and stabilised the situation in Mexico, Codere has now engaged Houlihan Lokey and Allen & Overy as its financial and legal advisors.”

Elsewhere, Codere released its Q4 figures today, 19 March, with revenue standing above €1.4bn and adjusted EBITDA at €206m in 2023, a 11% decrease YoY.

Though revenue remained in line with 2023, it increased 2% from the 2022 figure.

Excluding results in Argentina and Mexico, adjusted EBIDTA grew 19% YoY.

The firm added that it expects a “favourable evolution” over the upcoming quarters from an operating, financial and corporate perspective following a difficult Q1 2024.