by Anton Johan
Gala Coral's turbulent debt sage may finally be winding down after news that the group's mezzanine creditors have moved in to take complete control.
Private equity owners, Candover, Cinven and Permira, have had to exit the business with gigantic losses.
Their £1.2 billion stake was worth just £10 million at the end of the day, in part due to Gala Coral's troubled past years.
The mezzanine debt holders, namely Park Square, York Capital, Cerberus and Apollo, will be taking control of the company by providing an additional £200 million in cash to settle senior debt.
Their £558 million debt was also converted into equity.
Speaking about the completion of the restructuring, the Chief Executive Officer of Gala Coral, Neil Goulden said: "I am delighted that, after nearly 12 months, we have successfully concluded one of the largest and most complex restructurings in UK corporate history."
"The restructured group is now in a strong position and fully able to compete in an increasingly competitive and global gambling market," he added.
The four stakeholders will appoint four representatives to serve on Gala Coral's board of directors.
Cash reserves in the company are relatively good, and Gala Coral has already stated that the cash will be used to expand its online gambling arm into growing global markets.
"With our strong cash flow, we are well positioned to invest in growth as the UK and global markets come out of recession," said Goulden.
