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Codere hopeless and in debt

Codere hopeless and in debt

Codere, Spain's gambling giant, is finding it hard to pay its multi-million debt. A decade ago, when Spain experienced an economic growth, Codere did what other high Spanish corporates did, accumulate debt and expand to Latin America.

However, Codere SA is now in an unfortunate position and rushes into restructuring itself as regulation problems in Mexico and Argentina arise and the recession in Spain has narrowed the market. The debt is estimated to be more than €86.4 million ($114.6 million) causing an evident boost in corporate bankruptcies as they were predisposed to pay old debts.

This year only, Codere's shares have dropped 58%, placing the company in fourth place as one of Spain's worst stock exchange performers. The other three companies, have either been taken over by the government or declared bankruptcy.

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