Gala Coral Close to Finalizing Restructuring Deal

Gala Coral, the UK's largest bingo operator, may be close to escaping the financial doldrums that have been plaguing it of late, after the firm's private equity owners are reportedly close to finalizing a much-needed debt restructuring deal with the company's mezzanine lenders.

According to recent reports, Gala Coral private equity owners Candover Investments Plc, Cinven Ltd and Permira have almost reached an agreement with the firm's lenders, Intermediate Capital Group Plc and Park Square that will see both side share control of the large UK bingo group.

Despite operating over 150 bingo clubs and 1,600 betting shops across the United Kingdom, Gala Coral has come extremely close to breaching the terms of its massive 2.7 billion pound debt. As such, it had become important for Gala Coral's owners to strike a debt relief deal with its lenders.

There is speculation that the deal will result in the private equity owners and lenders receiving equal representation on the Gala Coral board of directors. If this is the case, the proposal needs to be approved by Gala Coral's current board of directors before being presented to its senior lenders.