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Gala Coral gamble on debt-equity deal

LONDON, England -- As reported by The Guardian: "Gala Coral, Britain's biggest bingo chain, is close to finalising a restructuring deal that will see lenders write off £540m of debt.

"The gambling group is set to become the latest company doing debt-for-equity deals in order to cut their debt mountains down to a more manageable level.

"Gala Coral's private equity owners Candover, Cinven and Permira are expected to relinquish up to half of their company stake in return for cancellation of loans.

"The operator of betting shops, bingo halls and casinos is having to pour money into servicing a £2.6bn debt pile. While Gala Coral has not breached any agreements with its lenders, it wants to free up cash to invest in the business as it battles a triple blow of the recession, the smoking ban and tax hikes on gaming..."

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