Spanish gaming group Codere has asked the Mercantile Court of Madrid for a four month negotiating period to refinance its debts under a provision in Spanish Insolvency Law.A series of what the company described as ‘extraordinary events’ has meant that the firm is suffering from liquidity constraints, which could prevent it from paying down a maturing senior credit facility amounting to €127.1m on January 5, if an agreement is not reached.
“Codere considers that, during the period stated by law, parties will reach an agreement to restructure the debt,” the company said.
Among the extraordinary events was the payment of €107m for the anticipated renewal of its gaming licences in Argentina’s Buenos Aires province, as well as that country’s implementation of a smoking ban, the closure of eight gaming halls in Mexico and an increase in gaming taxes in several territories in which it operates.
Codere has more than 19,000 employees and manages an estimated 53,000 gaming terminals, 178 gaming halls, 1,427 betting locations and several racetracks. It also has online gaming activities in Italy.
source : www.totallygaming.com
