Codere To Sell Assets After Trading Suspension Granted
Latin American gaming firm Codere SA looks set to cease stock trading after the National Securities Exchange Commission of Spain accepted their request to remove itself from markets.
The move comes after company shareholders approved a motion to dissolve the business’ assets. The NSEC of Spain have already confirmed that Codere will not feature on the Madrid Stock Exchange moving forward.
A huge re-structuring process has facilitated the decision, with the business’ bondholders acquiring a 95% controlling stake after transferring the firm over to a new enterprise, Codere New Topco SA. In addition, a colossal debt re-payment of €367M has been capitalized into equity. The inevitable plan formed to breakdown and sell assets has now been unleashed.
Codere’s financial woes have been catalysed by the ongoing global pandemic, with bricks-and-mortar units suffering badly from nationwide lockdowns and societal restrictions. However, Codere has managed to protect its online arm, with the platform showing green performance shoots even amidst the volatile situation caused by the coronavirus outbreak. Its online platform will continue to straddle markets in Spain, Italy and Latin America.
This isn’t the first major structural change the company has undertaken of late. Earlier in December, Codere merged with SPAC DD3 Acquisition Corps and subsequently entered the NASDAQ exchange. The move meant that Codere SA became the first Latin American iGaming company to trade publicly.
The National Securities Exchange Commission of Spain will suspend the trading of Codere stock as of Friday 17th December.
