Codere Group’s shares have tumbled following a turbulent phase. The Spanish gaming behemoth experienced a decline in its stock value to €0.89 after declaring a financial reorganization, effectively ceding control to its lenders.
This action follows a difficult year for Codere, as the COVID-19 outbreak compelled closures and resulted in a 57.2% revenue decrease. Although the company secured a financing arrangement last year, it came with stringent terms and involved a complicated asset transfer to a new parent company.
With the restructuring, Codere’s debtholders will now possess a controlling 95% ownership in the company. This provides Codere with a crucial €225 million cash infusion, but it also underscores the company’s precarious state.
Despite Codere’s assertions that this reorganization will safeguard its future, the market responded forcefully with a 12% share price decline immediately after the announcement. Investors’ apprehension about the company’s long-term well-being is evident, even with the influx of capital and the debt-for-equity exchange.
The firms shares are presently valued at an approximate €0.89 each, a figure indicative of their latest decline.