In Spain, and the founding family behind local gaming operator Codere SA reportedly demands that a pair of American investors be required to pay at least € 900 million ($ 1.09 billion) for a large stake in Madrid based in Madrid.

According to Thursday's SBCNews report, the Madrid listed entity was founded by Jose Antonio Martinez Sampedro in 1980 and is currently responsible for desktop and online gaming operations in Spain, Mexico, Argentina, Italy, Uruguay, Colombia and Panama. However, the source says the founder was removed from his position as CEO of Codere S.A. in 2018 as part of the company's debt restructuring plan estimated at $ 1 billion ($ 1 $ 21 billion).

Consequences of the coronavirus:

Codere SA then saw heavy business losses by the coronavirus pandemic, resulting in most of its land-based locations has been forced to shut down or operate at reduced capacity for most of last year. As a result, its 2020 annual deficit increased by more than 253% year - over the year to roughly € 237 million (286 million) even after some were released € 500 million (604 million) in the new super seniors.

Rescue route:

American stock and bond investment managers Jupiter Fund Management and Invesco Asset Management Board then came out last month to propose an agreement that would buy out the operator's remaining shareholders and provide the company with around € 225 million (271 million) in extra cash to help increase its immediate liquidity.

Authoritative Use:

But Martinez Sampedro the family reportedly made an official appeal to the Spanish National Securities Market Commission asking proposed buyers to forward minimum € 900 million for the 14th rate 1% at Codere SA. The petition allegedly states that this amount would serve as " reasonable compensation ”After the group obtained voting rights, completed as a result of the 2018 restructuring.

Notable players:

Silver Point Capital Management Fund manager Edward Arnold Mule is reportedly the largest single shareholder of Codere SA courtesy of 36% shares, followed by his company with 21.86% interest. Investment giant listed on the London Stock Exchange M&G is reportedly a major player through 23.97% stakes with a further 8. 79% operator shares outstanding are controlled by Abrams Capital Management .

Direct contempt:

Martinez Sampedro reportedly also claim that Jupiter Fund Management and Invesco Asset Management have breached Spanish financial regulations, " deliberately bypassing ”Recommendation to acquire minority shareholders when they accumulated 30% shares in Codere SA. Would-be US buyers allegedly rejected both aspects of the appeal and ensured that their obligations include the operator's investors and that the acquisition is necessary to protect the company from almost certain bankruptcy .