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Gala Coral in debt restructuring talks

Published on 6 Oct 2009 under category: legal

A bingo and betting firm is in negotiations to restructure its debt.

Gala Coral is thought to have entered advanced talks with regards to this, debt collection lawyers may be interested to hear.

The firm is understood to be looking to put a restructuring deal in place.

This could wipe out £540 million of loan debts that the company has, with these being exchanged for equity in the business.

Any action of this kind is likely to involve Candover, Cinven and Permira - the private equity owners of Gala Coral - relinquishing some of their stake in the company, it may interest debt collection solicitors to learn.

In other news, last week photography retail firm Jessops was saved from insolvency when a restructuring deal was agreed.

This will see HSBC take a 47 per cent stake in the company in exchange for wiping out around £34 million of its debt.

If you require advice on Insolvency and Bankruptcy please call us on +44 (0)20 7831 0101 and ask for Katherine Sillett.