Codere SA expects to complete its bond restructuring on November 5th, after first announcing it in April and giving bondholders complete control of the company.
Following months of financial instability for the betting and gaming operator, exacerbated by COVID-19 headwinds such as the closure of the group’s Italian, Mexican, Argentine, Uruguayan, and Panamanian operations, the decision was made to avoid bankruptcy.
The group revealed its H1 trading results, revealing a €51.3 million drop in revenue to €266.3 million, a 16.2 percent drop from the same period in 2020, with the most serious losses occurring in Italy and Argentina, respectively, at €57.7 million and €23.4 million.
To counteract these losses, the company announced an agreement with its stakeholders at the end of April that would see the Bolsa Madrid gambling group receive a €225 million cash injection.
As a result, the shareholders and Codere management agreed that the company should be liquidated and its assets transferred to a new corporate entity to ensure the company’s viability.
The company explained in a statement released Monday that its Board of Directors would call a general meeting of shareholders to lead to the company’s dissolution, and that shareholders would receive cash in exchange for their shares.
Ensure future of company
Codere detailed: “With the implementation of this restructuring, which is expected to be concluded at the beginning of the fourth quarter of the year, Codere hopes to ensure the future of the company, thanks to the trust of its bondholders in the group’s prospects, in its management team and in the most of ten thousand employees that make up the organisation.”
Despite its financial difficulties, Cdere’s board of directors filed an F-4 “preliminary registration statement” with the US Securities and Exchange Commission (SEC) in August in order to pursue a Nasdaq listing.
The planned registration is part of Codere’s plan to merge with DD3 Acquisition Corp, a SPAC led by former Goldman Sachs Latin America Executive Martin Werner, to divest its Codere Online unit.