Codere SA’s creditors have authorised the Spanish gaming company to renegotiate the terms of their senior secured debt bonds.
As part of the firm’s ongoing restructuring arrangements, the Bolsa Madrid gaming company has been allowed to postpone its debt maturity payments from 2021 to 2023.
Company creditors had allowed Codere to access a further EUR 250 million loan line back in July, holding the South American business units of the troubled company afloat during the lockdown of covid.
On the condition that Codere approved a loan tranche interest of 12.75 percent, double the interest rate charged on its long-standing corporate debt of 800 million euros, the company’s credit lifeline was extended.
Extension at lower rate
Further terms saw the repayments of the debt tranche maturity start from 2021, a condition renegotiated by Codere at a lower rate of 10.75 percent to 2023.
Codere has announced that ‘Codere Luxemburg’, a new subsidiary established to repay interest on revolving credit transactions in 2020 and 2016, will retain payment of its debt tranche interest.
UK Companies Act
In compliance with the UK Companies Act, Codere Luxemburg will meet its creditor obligations, s upervised by England and Wales’ High Court of Justice
Codere reported that 2020 year-to-date net losses stood at EUR 240 million as the troubled gambling company was impacted by the closure of its South American business units and continued extreme LatAm currency volatility when it released its November Q3 trading statement. On Friday 26 February, Codere ‘anticipates’ reporting its full-year 2020 results.