Codere nears bankruptcy protection deadline

Spanish based gaming giant Codere have rejected the latest debt for equity swap by creditors, the struggling gaming company requires 400 million euros of cash injection but said no to creditors offering the cash for 96.8% of the companies equity, saying it was too costly.

Instead the board and Directors of Codere are asking for 5 ½ year bond interest payments to generate 250 million euros with no equity in return, but observers say this will not happen.

If no agreement is reached to generate the much needed funding for the company by April 30 it will have to seek bankruptcy protection by the state. The fall from grace of the once mighty gaming company has been in part put down to the recession, increased taxes, stricter gaming regulations in the companies gaming sectors and the no smoking ban in its core businesses in South America. Codere have suffered 8 straight quarterly losses in the last 2 years.

 “The board will continue to make its best efforts to reach a consensual solution before having to seek full creditor protection and strictly observing Spanish laws, especially bankruptcy laws,” the board said in a letter to news agencies.