All eyes on wounded Grupo Codere

European business analysts are monitoring the movements of Bolsa Madrid gambling firm Grupo Codere SA closely, as the embattled company faces multiple obstacles in its corporate recovery.

Following the publication of its Q3 2018 trading update (13 Nov) in which the company posted year-to-date net losses of €55 million, Codere has witnessed its share price collapse from €6.20 to €2.85 (Madrid index – 23 Nov).

The heavily indebted Spanish gambling group (debt – €870 million) has been crushed by 2018’s Argentine Peso collapse hampering 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.

Further nausea for Codere sees 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.

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