Substantial exposure to Latin America (notably Argentina and Mexico), which we view as having generally higher political, regulatory, and foreign-exchange risks. Geographically diverse portfolio, although with a significant concentration of EBITDA in Argentina, representing 46% of the group's EBITDA. Currently unsustainable capital structure, but restructuring of outstanding debt is likely to be implemented by Dec. 2015. Weak liquidity, which is insufficient to satisfy Codere's obligations, with about 50% of cash balances held in Latin America, where they are not readily available. Substantial currency mismatch, with no hedges in place. Historically negative free operating cash flow (FOCF) as a result of heavy capex spend, which constrains deleveraging capacity. Codere has so far failed to pay interest on both the €760 million
