Codere, the Spain-based parent of NASDAQ-listed Codere Online Luxembourg, has announced that it has signed a new restructuring agreement with creditors to eliminate debt. With the signing of the restructuring agreement, which is the fifth in the series, Codere aims to trim down debt by 92 per cent. To be more specific, the gaming company aims to reduce its debt from $1.72 billion to $138 million. The restructuring plan enjoys the support of the majority of the company’s creditors and shareholders.

According to newly published reports, “The transaction so far has support from more than 60% of all creditors and shareholders. Creditors have until June 25 for subscribing to provide the bridge notes that will allow the company implement the deal, and until July 9 to accede the lockup agreement.”

Following the transaction, the company’s debt/earnings before interest, taxes, depreciation & amortization (EBITDA) ratio will come down to 0.9x, which will be more manageable than ever before.

The operator, which was previously known as Grupo Codere, is now referred to as Nueva Codere. It seems to be undergoing a transformation in the European country of Spain. As part of its transformation, it has spun off the online business and sold some of its Argentina assets. Argentina and Mexico are among the most crucial markets for the online gaming operator. It is for this reason that the company is trying to curb its debt burden in these markets.

As a public company, Codere Online made debut on 1st of December in 2021, following a merger with DD3 Acquisition Corp. II – a special purpose acquisition company (SPAC). In spite of its initial success, Codere is not highly familiar with U.S. investors, thanks to its focus on Latin America.

The restructuring is set to transfer control of Codere to investors, who will hold the company’s super senior notes, ensuring a smoother financial trajectory for the gaming company. This overhaul is expected to strengthen the company financial stability and open new avenues for growth.

The deep cut in Codere’s debt is a promising development that will not only enhance the company’s financial stability but also bolster its market appeal. With lower debt burden, the company will be in a better financial condition to capitalize on growth opportunities in its core Latin American markets. As Codere embarks on a fresh round of restructuring, stakeholders are expecting a brighter and more prosperous future for the company.