The board of Codere SA has been granted approval by bondholders to pursue a €100m liquidity injection, a transaction required for the Spanish gambling group to ‘avoid insolvency’.
In March, bondholders were notified of ‘liquidity pressures’ impacting Codere’s global operations, in which the company required emergency financing in the markets of Argentina, Mexico and Panama.
The funds will support Codere’s 2023-2027 plan and have been approved by the majority of bondholders and shareholders.
Codere has faced challenges due to the pandemic, slow economic recovery in Mexico, and regulatory restrictions, which have resulted in a cash deficit. The restructuring will help the company “meet essential investments and debt interest payments.”
The embattled multinational underlines that in 2022, it achieved its ‘initial post-COVID recovery objectives’ in its home market of Spain and improved performance in Italy and Argentina.
Yet, returning to normalised trading environments, Codere faces new liquidity pressures due to rising operating costs.
Codere has implemented a two-pronged approach involving an operational review, capital structure adjustments, and an additional €100m liquidity financing to support its 2023-2027 plan.
Corporate governance maintains its short-term pledge to guarantee that its business units will recover to pre-pandemic revenue levels and gross operating profit (EBITDA) by 2025.
Group Chairman Christopher Bell continues to lead the executive search for a new Group Chief Executive, following the departure of joint CEOs Alberto González del Solar and Alejandro Rodinp, relieved from leadership duties as of Friday 31 March.