Spanish gaming giant Codere is in talks with creditors in an attempt to refinance its debts in the wake of “liquidity constraints.”
The company has submitted a communication provided under the Spanish Insolvency Law before the Mercantile Court of Madrid. This provides the company a period of up to four months in which to negotiate a refinancing of its debt.
In 2012, Codere generated €287.3m of EBITDA, yet “extraordinary events” in both that year and 2013 resulted in liquidity constraints for the company.
Among these events was the payment of €107m for the anticipated renewal of its gaming licences in Argentina’s Buenos Aires province, as well as that country’s implementation of a smoking ban, the closure of eight gaming halls in Mexico and an increase in gaming taxes in several territories in which it operates.
These liquidity problems, it said, could prevent the company from paying down a maturing senior credit facility amounting to €127.1m on January 5, if an agreement is not reached.
“Codere considers that, during the period stated by law, parties will reach an agreement to restructure the debt,” the company said.
The submission does not affect the ordinary activity of the company, with its operations continuing as normal.
Codere has more than 19,000 employees and manages an estimated 53,000 gaming terminals, 178 gaming halls, 1,427 betting locations and several racetracks. It also has online gaming activities in Italy.
