SBC News Voice of the Sports Betting Industry
The board of Grupo Codere SA states that it is in “advanced negotiations” with existing bondholders to proceed with a “global recapitalization” of the Spanish and LatAm gambling group.
Codere confirmed that it had recruited investment bank Houlihan Lokey and law firm Allen & Overy as advisers for its intended recapitalisation program aimed at improving its capital structure and fostering future growth.
As cited by the board, the recapitalisation of Codere is needed to “clean up the company’s balance sheet and allow Codere to focus on the successful implementation of its business plan, while improving its financial capacity to drive its long-term growth strategy.”
Bondholders were informed that Codere had resolved operational issues in the key markets of Argentina and Mexico, which saw the company book statutory losses of $160 million in the first half of 2023.
The filing sees Codere return once more to bondholders to recapitalize the business, which in 2023 sought $100 million in capital to stabilize its business units in South America.
The Spanish markets conglomerate continues its corporate reorganization, which began back in 2022 by breaking away its Codere Online business via a Nasdaq merger with SPAC firm DD3 Acquisition Corp.
Codere provided no information on funding sought by the “global recapitalization,” needed to fund the firm’s “2023-to-2027 recovery strategy.”
Corporate governance maintains Codere’s long-term outlook that the business will become effective in generating gross profits by 2025, maintaining its business units in Spain, Italy, Colombia, Mexico, Uruguay, Panama, and Argentina.
The embattled Spanish gambling group has previously cited that it will not sell any of its international units operating in Italy and Argentina, Mexico, Uruguay, Colombia, and Panama.
