Apollo has submitted a proposal to Gala Coral’s board under which it would pay £250 million ($405 million) in exchange for half of the company, which runs about 150 bingo clubs and more than 1,600 betting shops, the newspaper said.
The gaming company, which is laden with about £2.7 billion of debt, had been considering a restructuring deal from a group of its junior lenders.
Under the Apollo deal, £250 million would be repaid to the group’s senior lenders and the junior lenders would be given the other 50 percent for the company, although Apollo would have majority voting rights, the newspaper said.
Gala’s main lenders will decide which restructuring proposal they prefer before Christmas, the Sunday Times said.
(Reporting by Paul Sandle)