Codere Group Companies in Mexico Ordered to Pay Millions in Maintenance Debts
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The Mexican judiciary has issued rulings against the seven companies that form part of the Codere Group in the country due to unpaid maintenance services to a provider in 2021. As a result, the companies are required to pay millions, along with late interest and the costs associated with the commercial litigation.
The companies involved are Administradora Mexicana de Hipódromo, Operadora Cantabria, Libros Foráneos, Operadora de Espectáculos Deportivos, Mio Games, Promo Juegos de México, and Recreativos Marina. The rulings were issued by the Tenth Civil Chamber of the Superior Court of Justice of Mexico City.
According to the Mexican newspaper Milenio, the court has ordered the seizure of Codere’s assets to prevent any attempt at insolvency. Additionally, the process of assessing the group’s assets and determining the final amount owed to the provider is already underway.
It was also noted that the General Director of Casinos and Lotteries of the Ministry of the Interior, Leonardo Manuel Figueroa, "must be vigilant about a possible exit of the casino giant from Mexico," which could occur as part of the debt restructuring process of the Spain-based company.
Following this, it was reiterated that “it is mandatory for any company of this type to be sold with zero liabilities” in Mexico. It was also mentioned that “Grupo Codere holds licenses for all the mentioned companies and operates 80 casinos, including the racetrack.”
“Alfredo Garza Murillo, owner of Mio Games, should also be mindful of these rulings since he has businesses in the U.S. that require compliance; if the case in Mexico turns into a financial scandal, it could affect him,” the report concluded.
Impact of the Restructuring
After the Spanish judiciary approved the debt restructuring of the Codere Group, several bondholders have converted their debt into shares of the company. Among them is The Soros Fund, the family office of U.S. businessman George Soros and his family.
According to the Spanish newspaper El Confidencial, as part of this restructuring, “The Soros Fund has acquired a 3.03% stake in the online betting and gaming company.”
Additionally, it was reported that other investment funds that have also capitalized their debt—such as Invesco, Jupiter, Palmestone, and BlackRock—have strengthened their positions in the company or, like Soros, have become new shareholders.
