Spain's Codere accepts grace period offer on 127 mln euro loan

01/07/2014

MADRID, Jan 7 (Reuters) - Spanish gaming group Codere , which last week sought protection from creditors and started talks to avoid insolvency, on Tuesday said it had accepted an offer for a grace period on a 127-million-euro ($173 million) loan due on Jan. 5.

In a statement to Spain's stock market regulator, the company said the entities which made the loan had offered to extend the repayment deadline by 30 days, to Feb. 6.

Further extensions are possible until April 15, depending on progress in debt talks, it also said.

Codere, which had 1.27 billion euros of debt at the end of last September, according to company filings, had warned when it filed for protection from creditors about a possible late repayment on the 127-million-euro loan.

Under the proceedings, Codere has up to four months to reach a deal with banks and investors.

Codere did not return calls seeking comment on the implications of the grace period.

The group has made several late payments on bond coupons in recent months as it tried to win time to restructure its debts.

International private equity firm Blackstone Group LP , through its credit arm GSO Capital Partners, and hedge fund Canyon Capital LLC are among investors that have bought up Codere debt in recent months.



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