Gala restructures debt

Candover Investments, Cinven and Permira, the private equity owners of bingo company Gala Coral, are close to securing a debt restructuring deal with the company’s mezzanine lenders.

The restructuring has become necessary as Gala Coral, which currently runs 150 bingo clubs across the UK as well as 1,600 betting shops, is close to breaching the terms of its £2.7bn debt agreement.

In the past month, mezzanine lenders proposed taking an equity stake in the company in exchange for stopping interest payments on the debt.

If the deal goes through, mezzanine lenders and private equity owners could take equal representation on the board of directors which would give the lenders much greater say over the future of the company.