Codere Defaults but Creditors Keep it Alive
Key Takeaways
  • Codere has managed to negotiate with its creditors to stave off bankruptcy.
  • Creditors provided an extra €35m in loans which allowed it to make an interest payment on $300 million of bonds.
  • The International Swaps and Derivatives Association (ISDA) ruled that a “credit event” had taken place triggering payment of credit default swaps.
  • Codere now has enough cash to make it through to January 2014 by when it needs to renegotiate €1.12 billion of debt.

Codere has managed to negotiate with its creditors to stave off bankruptcy, but a default on loan payments has triggered credit default swap payments on $445m of its debt.