Codere shareholders have approved a restructuring deal in which its creditors will take control of its operating business.
Under the deal, which has also been ratified by the operator’s board, all of Codere’s current business will be brought under a new holding company. The restructuring was agreed with the majority of bondholders last month.
This new entity will be 95% owned by its current bondholders. Current Codere shareholders will hold the remaining 5%, but will also receive warrants that may grant them up to 15% of the business if its valuation exceeds €220m in the next 10 years.
Through this process, €367m of Codere’s debt will be capitalised into equity.
In addition, Codere will raise a further €225m to keep itself afloat until its venues may reopen following novel coronavirus (Covid-19) lockdowns across key markets.
This comprises a €100m bridge loan – of which €30m has already been contributed – and €125m in super senior bonds.
“With this process Codere considers, based..