Codere SA Delays Debt Payments To Review Crisis Options

Embattled Bolsa Madrid gaming company Codere SA has delayed payments on its €500m and $300m debt tranches, while corporate governance reviews the long-term funding options open to the firm.

Codere made its decision public Monday through a corporate filing with the competition and markets regulator (CNMV) in Spain.

In its notice, Codere told that it was part of group-wide contingency arrangements to postpone debt payments, with the company trying to retain corporate liquidity in all operating markets.

In support of the company’s stability plan during the COVID-19 lockout, Codere is looking to collect another €100 million in working capital, which will be paired with its current €130 million loan facility.

Codere highlights its commitment to keeping its land-based gambling assets floating in both European and South American markets, and is currently seeing a phased reopening for its business units from mid-May to June (subject to regulatory approval).

Fighting for its survival, Bank of America was sanctioned at the beginning of April by Codere to lead renegotiations with US bondholders for a further two-year extension on debt maturity terms that will expire in 2021.

Codere’s long-term debt of €900 million has been largely accrued as part of the company’s 2015 restructuring led by US private equity companies, which saw the legacy operator escape bankruptcy.

Rating agency Moody’s was forced to downgrade Codere’s bond rating to a CAA1 level, describing the company’s debt options as a ‘high risk junk bond’ with pessimistic investor outlook.