Online Casino Transfer: News - Gala Coral to See Changes

03/28/2010		Online Casino Style: News Gala Coral to See Changes
Home History Games News Dictionary		One internet gambling company is preparing for the rest of 2010 as it is a year for major change. The UK online casino and land venue company Gala Coral is coming close to what seem to be decisions after months of debate and discussion over ownership of the company. Should the rumors be true, and an agreement be on the horizon, it could very well also mean that the long-awaited for solutions to their significant debt problems are also within reach. One of the significant changes of the new solution is the alteration that will have private equity owners with little to no involvement in the future of the company. According to a recent report by the Telegraph newspaper, the largest of Britain’s gaming operators has been set in a very awkward place, pitting the debt holders against the private equity owners, Permira, Cinven, and Candover. Because of the substancial sums of money owed to the lenders, £2.6 billion, it gives the holders enough power to significantly alter the course of the internet gambling company’s year, if not future. The money lenders have been led by powerhouse Apollo, and include other major names such as Park Square, Goldman Sachs, and Cerberus. A deal is now very close to being signed that will assign to them full control of the firm’s equity. Another surprise in the negotiations is the survivorship of Neil Goulden, who had been expected to step down as executive chairman but will now stay on to oversee the eventual listing of Gala Coral as a publicly traded company. According to the reported agreement, the changes would result in Gala Coral’s debt being severed from a debilitating £2.6 billion down to £1.85 billion. It’s a trade off: £540 million of debt for a 30 percent stake in the company, putting up another £200 million to own the remaining 70 percent. The existing private equity owners will get a 1 to 5 percent tip for their consenting signatures, and management could walk with as much as 10 percent, depending. "It is 99.9 percent certain that this deal will be agreed,” said Goulden. “Documents will be sent out tomorrow and are expected to be signed and returned by April 1. If they do not play ball, we will be forced to put the company into a pre-pack administration. Everything will still get done but it will take longer.”

03/28/2010

Online Casino Style: News
Gala Coral to See Changes

One internet gambling company is preparing for the rest of 2010 as it is a year for major change. The UK online casino and land venue company Gala Coral is coming close to what seem to be decisions after months of debate and discussion over ownership of the company. Should the rumors be true, and an agreement be on the horizon, it could very well also mean that the long-awaited for solutions to their significant debt problems are also within reach.

One of the significant changes of the new solution is the alteration that will have private equity owners with little to no involvement in the future of the company. According to a recent report by the Telegraph newspaper, the largest of Britain’s gaming operators has been set in a very awkward place, pitting the debt holders against the private equity owners, Permira, Cinven, and Candover. Because of the substancial sums of money owed to the lenders, £2.6 billion, it gives the holders enough power to significantly alter the course of the internet gambling company’s year, if not future.

The money lenders have been led by powerhouse Apollo, and include other major names such as Park Square, Goldman Sachs, and Cerberus. A deal is now very close to being signed that will assign to them full control of the firm’s equity. Another surprise in the negotiations is the survivorship of Neil Goulden, who had been expected to step down as executive chairman but will now stay on to oversee the eventual listing of Gala Coral as a publicly traded company.

According to the reported agreement, the changes would result in Gala Coral’s debt being severed from a debilitating £2.6 billion down to £1.85 billion. It’s a trade off: £540 million of debt for a 30 percent stake in the company, putting up another £200 million to own the remaining 70 percent. The existing private equity owners will get a 1 to 5 percent tip for their consenting signatures, and management could walk with as much as 10 percent, depending.

"It is 99.9 percent certain that this deal will be agreed,” said Goulden. “Documents will be sent out tomorrow and are expected to be signed and returned by April 1. If they do not play ball, we will be forced to put the company into a pre-pack administration. Everything will still get done but it will take longer.”