Gaming News

Gambling giant Gala's £550m plan to avoid break-up over debts

LONDON, England -- As reported by the Daily Mail: "Gaming giant Gala Coral is to try to persuade its private equity backers to give up part of their stake to the company's debt-holders in a deal that would free up millions of pounds to invest in the company and avoid a break-up.

"The group, which owns casinos and bingo clubs as well as the Coral bookmakers chain, is labouring under a £2.7billion debt pile.

"But because of the restrictive terms of its loan agreements, it is unable to invest any money in its business despite having a £250million pot of cash in the bank.

"Under plans being drawn up by its adviser, Lazard, an agreement is to be sought between the company's three private equity backers, Candover, Permira and Cinven, and a 50-strong syndicate of financial institutions, including Intermediate Capital..."

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