We understand that Spain-based gaming company Codere S.A. (Codere) has missed the interest payment on its €760 million senior notes, which was due on June 15, 2013. Although the documentation includes a 30-day grace period, under our criteria, we consider the extension of a due payment of interest or principal as tantamount to a default if the payment falls later than five business days after the scheduled due date. We do not think that Codere will make the interest payment today, which is the fifth business day after the scheduled due date, as the company has hired professional advisors to assist it in negotiating the renewal of its senior credit facilities, as well as evaluating and analyzing various strategic alternatives
