The Martinez Sampedro family demands the compensation filed with the Spanish regulator. The family claims that a group of investors bypassed a minority shareholder’s takeover offers.
The US investors state that the seizure had to deal with the debt holders’ duties but not the shareholders.
Justifiable Compensation
To the National Securities Market Commission, the Martinez Sampedro family appeals to demand from the regulators. Moreover, they appeal to impose the troubled gaming company’s US investors. The appeal was made to acquire a 14 percent stake of the family for a price of €900 million.
Via the bankruptcy control of Codere taken by US investors in 2018, the founding family states this. Moreover, in 2018, it renegotiates the debt of the company, which is €1 billion. However, to the minority shareholders of the company, a takeover bid was purposefully bypassed by it when they gain a stake of 30 percent. Moreover, it violated the takeover laws in the Spanish market.
The family of Martinez Sampedro sees that as the US investors deny their voting right, the proper compensation is €900 million. After restructuring the company, the board-level representation of the company terminated due to the US investors.
Over Shareholders, Debt Holders Took the Priority
According to the latest filing of Codere to the regulator, Edward Arnold Mule is the company’s largest shareholder, with a 23.36 percent stake. It was followed by two funds in the US, with M & G PLC with 20.97 percent and Silver Point with 21.79 percent.
These investors dismissed the family claim, which states that the company was rescued from bankruptcy through their combined takeover—Moreover, the company’s shareholders have to deal with the debt holders. But with regards to recent Codere struggles, the rescue claim seems far-fetched.
The Spanish operator, besieged by the solvency issues and outstanding debt, with its creditor, had to agree on a deal last month. Moreover, it falls into liquidation essentially. €350 million of the debt decided to convert by the Codere into exchange for equity for €225 million of new shareholders existing cash.
This year’s maturity debt payments will delay until 2023 and again then until 2026. And in new senior bonds, €100 will issue by the Codere. Moreover, in 2 tranches, it will come before the end of May. And €30 million will be the first of which.