Codere reduces debt by 92% as part of new Global Recapitalisation plan

Codere SA has confirmed that creditors have agreed to reduce its corporate debt by 92% as part of a new financial restructuring programme.

The terms of the new agreement will see Codere reduce its outstanding corporate debt from $1.7bn to approximately $140m, as of June 2024.

The debt-reduction plan received majority approval from 60% of Codere creditors, who have been granted until 9 July to secure terms on a lock-up agreement needed to guarantee a new restructuring programme.

The recapitalisation involved Codere’s ownership being passed on to the creditors, who are largely existing shareholders.

The debt reduction will help Codere stabilise its financial position and focus on its strategic growth plans to return to profitability by the end of 2025, as detailed by the firm’s corporate recovery strategy.

At the start of the year, Codere announced that it would return to bondholders to recapitalise its business and secure new finances to maintain its South American units in Argentina, Colombia, and Mexico.

In addition, Codere will receive 60 million euros in additional liquidity, of which it will receive 20 million in July.

Group CEO, Gonzaga Higuero, commented: “This agreement marks a pivotal moment in Codere’s path towards a new chapter, one characterised by financial stability, strategic growth, and continued dedication to excellence for our customers.

We are confident that this recapitalisation will enable us to better focus on the Group’s operations and achieve our goals for the benefit of all our stakeholders, including financial creditors, business partners, suppliers, and customers.”