The Spanish gaming firm, Codere, declared in a media statement issued on Monday, September 20th, that it anticipates its financial reorganization strategy to be finalized by November 5th.

The corporation had presented a proposal in April to avert insolvency by transferring authority to its lenders, an action that will result in the dissolution of its parent entity, Codere S.A.

A fresh holding corporation will be established, with creditors possessing 95% of the stock and current stakeholders retaining the remaining 5%.

Debt holders will obtain notes through the debt-for-equity exchange, and they have until October 18th to consent to the conditions.

Overall, the agreement will impact securities with a total issued value of €1.15 billion (equivalent to $1.3 billion USD).

Codere maintains that the arrangement is vital to sustaining the business until all its locations resume operations, and its investors endorsed the restructuring in May.

Through this agreement, the enterprise secured a capital infusion of €225 million, of which €30 million was disbursed promptly, and €70 million by the conclusion of May.

The outstanding €125 million will be furnished closer to the finalization of the restructuring process.

The company has faced a challenging period, with its stock value plummeting to €0.89 after disclosing its entry into administration, partly attributed to a 57.2% decline in earnings following closures enforced in March due to the Covid-19 pandemic.

This recent progression signifies that its restructuring remains aligned with the company’s original forecasts.

Codere had earlier indicated that they anticipated the agreement to be concluded by the beginning of the final quarter.