Codere SA has completed its Global Recapitalisation Programme, lowering the net debt of the Spanish gambling group to “approximately €65m”.
The recapitalisation programme was agreed in June 2024, as Codere creditors agreed to reduce the firm’s long-standing debt from around €1.4bn to approximately €190m.
The debt-reduction plan received majority approval from 90% of Codere creditors, who were given until 9 July to secure terms on a lock-up agreement necessary to guarantee the new restructuring programme.
At the start of the year, Codere announced that it would return to bondholders to recapitalise its business and secure new financing to maintain its South American units in Argentina, Colombia, and Mexico.
The recapitalisation involved Codere’s ownership being passed on to the creditors, who are largely existing shareholders.
The debt reduction will help Codere stabilise its financial position and focus on its strategic growth plans to return to profitability by the end of 2025, as outlined by the firm’s corporate recovery strategy.
Gonzaga Higuero, CEO of Grupo Codere, stated: “The transaction is a decisive success for Codere, a guarantee for the future that secures our financial position and relaunches the company’s ability to achieve the growth objectives set. We appreciate the trust of our clients, the support of our investors, and the commitment of our team. We are ready to generate value for all our stakeholders.”
In addition, the company has received an injection of approximately €60 million of new liquidity, which will help boost its business plan and strengthen its solvency and financial health.
“This milestone marks the beginning of a new stage of financial stability and strengthens the group’s capacity for growth and long-term value creation,” Higuero concluded.
“With an optimal debt structure and greater liquidity, Codere is in a position to take advantage of new expansion opportunities in its key markets in Latin America and Europe, thereby consolidating its leadership in the sector.”