The movements of one of the LatAm’s most significant operators, Codere are being closely watched by European business analysts, as the company faces a variety of hurdles in its corporate recovery.
It comes after the company released its trading update for the third quarter of 2018, in which it was revealed the company had endured year-to-date net losses of €55 million, leading to its share its share price collapsing from €6.20 to €2.85 (Madrid index – 23 Nov).
The deeply indebted Spanish gambling group (debt – €870 million) has been severely hampered by 2018’s Argentine Peso collapse, which hurt performance within its biggest operational market.
A dire 2018 has seen Codere branded as Bolsa Madrid’s ‘biggest bleeder’, with the Spanish legacy gambling outfit losing circa €700 million in market capitalisation.
Elevating nervousness for Codere, Bloomberg report that US fund Invesco has sanctioned a full-offload of its investment in the gambling group, as numerous debt holders appear anxious with regards to their holdings in the wounded enterprise.
In its November update, Codere governance has stated that it was dealing directly with its Argentine market realities, undertaking corporate adjustments which will see ARG Peso inflation impacts separated from its core business reporting.
At board level, Codere continues its legal battle with the enterprise founding Sampedro Family, who this November filed a US lawsuit against the firm’s US investors, claiming unfair dismissal and non-representation from the firm’s corporate governance structures.
