Multinational Spanish casino operator Codere SA has reached an agreement with creditors to restructure €1.1 billion—US.4 billion—of debt, allowing the company to stave off insolvency.
According to a Bloomberg report, the company will use the U.K. legal process to implement the deal, which includes issuing €675 million in new bonds and €253 million in new loans, according to a statement from Codere. Jose Antonio Martinez Sampedro will remain as chairman and CEO of the operator.
Codere has been negotiating for more than a year with creditors after 10 consecutive quarters of losses, which the company attributes to the recession, high European taxes, tighter regulations and smoking bans. The creditors will end up with more than a 60 percent stake in the company after the restructuring. Bondholders include Silver Point Capital LP and M&G Investment Management Ltd. Los Angeles-based Canyon Capital Partners LLC is among the holders of Codere’s €127.1 million loan.
Codere employs 17,890 and operates more than 1,600 betting shops and 172 gaming halls in Spain, Italy and Latin America.