by Anton Johan
As Gala Coral considers proposals and counter proposal plans that are
meant to restructure its debt, the date that was set for the plan to kick into
action is approaching very fast.
Gala Coral's management had previously indicated that debt restructuring
would be set up before Christmas, definitely by the New Year, however it seems
highly unlikely that this is about to happen.
Lenders and private equity suitors continue to vie for control of Gala Coral
by proposing their own versions of debt restructuring.
Mezzanine debt holders, led by Intermediate Capital Group and Park Square,
tabled a proposal earlier this year to convert their £540 million into
equity.
However, since then, the company has received counter proposals from
Blackstone and Apollo Management, two private equity firms.
A restructuring debt requires the agreement of all parties, including senior
debt holders, mezzanine debt holders, company management and equity holders.
"Given the group's strong competitive position and very solid cash flows, we
continue to believe that a consensual restructuring is a viable and realistic
prospect, and I will continue to lead and facilitate this process with the
engagement of all stakeholder groups," said the Executive Chairman of Gala
Coral, Neil Goulden.
"The Board has received a number of offers and is currently discussing these
with the Senior Lenders Coordinating Committee. We would expect to make
significant progress in the coming weeks and be able to update on progress early
in the New Year."
