Embattled Spanish gambling operator Grupo Codere SA (Codere) has issued a new share capital increase valued at circa €494 million (£400 million).
Executing its share issue with Spain’s National Securities Market, Codere will approximately release 2.47 billion shares at a value of € 0.20c (per share).
Codere’s share distribution will be primarily used to offset its current + €1 billion debt with bond creditors.
The share placement will effectively see Codere creditors take control of the company, as majority shareholder the Martinez Sampedro family sees its corporate equity dilute from 70% to just 2%.
Spanish news sources report that Codere governance had decided to implement the share capital issue at its December board meeting, following a further extension to its creditor facilities.
Codere who operate gambling services in Spain and South America, has reported multiple consecutive losses in its financial updates with the operator burdened by its debt repayments.
During 2015, Codere led by re-appointed CEO Jose Martinez Sampedro, implemented a company operational and strategic restructure which saw the company narrow its full-year losses to €110 million.
Seeking further creditor relief, in January Codere SA was allowed by UK High Courts to secure its + €1 billion debt under London business terms, with the city acting as the operators ‘Centre of Main Interest’
Source: SBC News
