Codere’s board has revealed that “advanced negotiations” have been reached for the “global recapitalisation” of the firm’s Spanish and LatAm gambling operations.
The stage has been reached with existing bondholders and progress will continue following the investment of investment bank Houlihan Lokey and law firm Allen & Overy as advisers.
The board emphasised 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.”
Furthermore, Codere has also 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 recapitalise the business, which in 2023 sought $100m in capital to bolster the group’s operations in South America.
The Spanish markets conglomerate continues its corporate reorganisation, 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 recapitalisation,” 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 its international units operating in Italy and Argentina, Mexico, Uruguay, Colombia and Panama.
