The company outlined its plan to avoid bankruptcy by transferring control to its creditors in April, a move that will see its parent company, Codere SA group, liquidated.
A new holding company will be created, in which the creditors will hold a 95% stake while existing shareholders retain the remaining 5%.
Notes will be issued to bondholders in a debt-for-equity agreement, who will have until 18 October to provide their consent.
All-in-all, this deal will see securities affected in the transaction that correspond to issues totalling €1.15bn ($1.3bn).
Codere claimed this deal was critical to keep the business afloat until it can reopen all of its venues and in May, its shareholders voted in favour of the restructuring.
The deal saw the company set to gain a €225m cash injection, with €30m being paid immediately and €70m by the end of May.
The remaining €125m will be provided near the end of the restructuring process.
This comes off the back of a rough year for the company, which saw its stock price plummet to €0.89 after it announced it was entering liquidation, a move that was in part prompted by a 57.2% drop in revenue in March due to Covid-19 closures.
This latest development means its restructuring is on track with the company’s original expectations.
At the time, Codere stated that it anticipated the deal “to be concluded at the beginning of the fourth quarter of the year.”
