- Legal States
Julie Moraine December 15, 2021 2 min read
Codere to Sell Assets, Requests Stock Trading Suspension
The National Securities Exchange Commission of Spain announced it would grant a request from Group Codere SA to suspend its stock from trading as the company begins to dissolve its assets.
Taken Down from Public Trading
Spain’s securities trading regulator Comisión Nacional del Mercado de Valores (CNMV), acting on an official request from Group Codere, announced its stock would cease to trade on the Madrid Stock Exchange.
“Shareholders had approved the proposed resolution to dissolve the company and the opening of winding-up proceedings. Furthermore, it was agreed to request the CNMV the suspension and removal from trading of their securities.”Spokesperson, CNMV
Codere requested the trade suspension following a shareholder decision that approved the dissolution of the company’s assets. Last month, a restructuring plan that was approved earlier in the year and provided for the company’s bondholders to gain a 95% stake after transferring the business to a new entity, Codere New Topco SA, was completed.
The restructuring plan which saw €367 million of debt being capitalized into equity and a shift of power was due to the company’s financial struggles that were exacerbated by the global response to the pandemic, forcing the business in a corner.
As the deal transferred almost the entire control into the hands of Codere’s US bondholders, it was only a matter of time before they decide to break down the company and start selling the pieces. Following the decision taken at a shareholder meeting, the CNMV said the exchange authorities would suspend trading of Codere stock effective Friday, December 17, 2021.
Online Gaming Safe from Dissolving
Codere’s online division will continue to operate after it showed its resilience during times in which the group’s land-based facilities were struggling. Operating across markets in Spain, Italy and Latin America Codere Online proved its value and, following an increase in turnover since the re-opening of Latin American jurisdictions where it is operational, for now, the division looks safe from dissolving.
Furthermore, Codere Online went public on the NASDAQ earlier this month after closing a merger with DD3 Acquisition Corp. to become the first Latin American publicly traded iGaming company.