Codere Argentina’s Vice-Chairman left the company

In a concise press release, the firm points that Héctor Luna presented his resignation to the position “for professional reasons and in accordance to the company, his resignation as VP of Codere Argentina and its subsidiary companies”. 

The same report adds that Luna “has communicated the firm his decision to develop other professional experiences, and Codere has accepted his resignation.”

“Codere thanks Héctor  his professional contribution as head of the Argentinian venue during the last year, wishes him the greatest success in his professional future,” concludes the press release by the Spanish companu, that has been operating, for 20 years, 14 casinos in the province of Buenos Aires. The local business is the one that brings more income to the Spanish group, with 654 million euros collected in 2012.

The resignation of the Vicepresident in Argentina turned out to be positive for Codere, at least in the value of its shares in Spain, which decreased days ago.

With a rise of up to 16% in Madrid Stock Market, a great part of Wednesday session showed a positive trend, boosting the rise of the shares. A boost that, according to experts, was also fueled by technical reasons.

In recent days, the eyes of investors put their attention on Codere debt, whose “rating” has again cut out Moody’s agency, which has caused a strong outburst of sales of its shares in Madrid Share Market, and generated a decrease of the 41% in the price of its shares in just five days of the stock-market activity.

This abrupt setback, experts say, augurated an abrupt and speculative upward turn in the short-term, to recover part of the losses, and which would explain Wednesday rise. 

According to different rumors and news articles, the problem that Codere faces is the refinancing of a credit for 60 million euros, whose expiration date is planned for June 15. And although the news were denied by the company itself, rumors assured that Codere would be  incapable of attending its commitments, which generated the impulsive sale of shares by the investors. 

From Moody’s credit rating agency they also target other credits in Argentinian pesos valuated in around 29 million euros, which would also expire before the cend of the first semester of the year. And, furthermore, there were rumors about possible lawsuits by shareholders, due to lack of information about the risks. Although the company has announced it has “no formal or informal knowledge” of this alleged legal initiative by the shareholders, different rumors hit Codere quotation, making it lose a considerable part of its market value.

However, the technical factors mentioned and the speculations for the future progress of the business in Argentina, one of the most complicated markets for the firm this year, let the firm have a second day in a row with strong increases in the stock market. The business volumen has exceeded half million titles, when its average is in just 83,500 shares.