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Gala Coral and creditors close to hammering out deal to ease debt

GAMBLING group Gala Coral is understood to be days away from a deal to ease its £2.5bn of debts.

Gala’s senior lenders — led by Royal Bank of Scotland, Lloyds Banking Group and investment group Alcentra — are in advanced talks with the holders of its £540m mezzanine debt about a debt-for-equity swap.

The mezzanine debt holders have been asked to make a cash payment of up to £150m. This would be raised through a rights issue underwritten by the two biggest mezzanine-holders — Intermediate Capital Group and Park Square — along with Apollo Management, the private equity group that owns 15 per cent of the debt.

The group’s private equity owners — Candover, Cinven and Permira — may join the underwriting syndicate.