The debate over the future of Spanish gaming group Codere is far from over, as plans to restructure the business continue to be rejected by both sides.
A plan put forward by creditors to inject up to €400m into the company in exchange for 96.8 per cent of its equity was rejected by the Codere board, Bloomberg News reported.
Instead, the board is proposing a five-and-a-half-year moratorium on bond interest payments or a 50 per cent writedown on the debt and conversion into eight per cent notes to a maximum of €250m and no equity for creditors.
Challenging trading conditions and debts amounting to €1.1bn have heaped pressure on the company, which sought initial creditor protection at the start of the year. This gave it a four-month window to restructure its debts or begin insolvency proceedings.
Codere has until April 30 to agree to a restructuring deal or file for full protection under Spain’s bankruptcy laws.
