UK court allows Codere SA to secure debt under London policy

UK High Court Judge Guy Newey has granted Spanish distressed gambling operator Grupo Codere SA the right to secure its €1.2 billion (£850 million) debt restructure utilising London market policy.

Following a preliminary hearing, Newey ruled that Codere’s debt restructure was viable under London jurisdiction, despite its previous bonds having been issued in New York and the operator having no historical ties to the UK.

London will now act as a Centre of Main Interest (CoMI) for the embattled operator who had been granted a December 2015 extension to restructure its € billion debt by creditors.

In order to comply with London business regulations, Codere will incorporate a new UK subsidiary ‘Codere Finance UK Limited’, which will assume responsibility to existing corporate debtors under UK law.

In its latest corporate update (Q1-Q3 2015), Codere SA governance reported that it had reduced its operating losses to €75 million. The operator detailed that it had begun to see a turnaround in its troubled Latin American gambling division.

2015 saw the re-appointment of Jose Antonio Martinez Sampedro as Codere CEO, following the appointment of several new executives Sampedro moved to gain Codere a further extension on its debt restructure and the undertaking  of a new cost saving initiatives.