March 19, 2024 3 min read


Codere to Use Legal and Financial Advisors to Support Growth

Codere has hired financial and legal advisors to help it promote its growth and strengthen its capital structure

The leading multinational group in the private gaming industry with 40 years of experience and a strong presence in Europe and Latin America, Coedere, has recently inked agreements with Houlihan Lokey and Allen & Overy

Codere to Boost Its Capital & Record More Growth

The two firms will become Codere’s financial and legal advisors in its endeavor to improve the structure of its capital and generate better growth.

Houlihan Lokey, the investment banking firm that has been “named No. 1 in its class for the past 10 years” will use its rich expertise in financial restructuring, financial and valuation advice, mergers and acquisitions, and capital markets to assist Codere with its new plan. 

Similarly, Allen & Overy, one of the leading dispute practices worldwide with a staff counting more than 5,550 members employed in 40+ international offices, will use its vast experience with arbitrating, litigating, and resolving a plethora of commercial and corporate disputes across multiple jurisdictions in Codere’s best interests.

Ready to Complete a “Global Recapitalization”

The operator further explained it was busy carrying out advanced talks with its primary bondholders for the completion of the commercial terms of its “global recapitalization.”

The newly employed firms will therefore help Codere supervise the entire recapitalization process and assist it “in pursuing a holistic recapitalization” that would help improve the capital structure while driving more growth and putting the focus on the “successful implementation of its business plan.”

The news comes after Codere published its October 2023 update that showcased an overview of the continuous regulatory problems faced by the group in Mexico and Argentina.

At the end of the first semester of 2023, Codere tripled its global losses compared to the previous year because of the shutdown of over 10 of its gaming rooms located in the two countries.

In Mexico, the issues forced the group to make a €50 million ($54.2 million) provision included in tax disputes.

The provision was made in the accounts of the financial year 2022 because of a “potential liability of Codere Mexico arising from a dispute with the Mexican tax authority” after the merger between Complejos Turísticos de Huatulco and other Codere Mexico subsidiaries in 2008.

In Argentina, Codere’s problems were tied to the closure of its retail operations in the last few months.

All Operational Issues Resolved

The group has issued a statement in which it explained that, as a result of fixing all operational issues in Argentina and stabilizing the situation on Mexican soil, it was able to employ Houlihan Lokey and Allen & Overy as advisors.

Codere is confident in the “favorable evolution” it is going to record in the upcoming quarters due to its fresh operating, financial, and corporate perspective after the rough first quarter of 2024.

The group also released its fourth quarter figures, showcasing revenue over the €1.4 billion ($1.5 billion) threshold and adjusted EBITDA of €200 million ($217 million) in 2023.

Codere Online, which is the pioneer online gaming operator in Latin America listed on the US Nasdaq stock market, reported strong revenue growth for Q4 and the full year 2023, according to the freshest updates. 

After finishing her master's in publishing and writing, Melanie began her career as an online editor for a large gaming blog and has now transitioned over towards the iGaming industry. She helps to ensure that our news pieces are written to the highest standard possible under the guidance of senior management.

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