Codere, a leading international company in the private gaming sector, published, through a significant event issued on October 7, 2019, that its internal control procedures have detected certain inconsistencies in the reporting of 2019 accounting results in three of its Latin American subsidiaries (Mexico, Panama and Colombia).
The preliminary analysis of these inconsistencies quantifies its maximum impact at 13-18 million euros on the results published for the first half of the year, and would reduce the company's Adjusted EBITDA expectation for the entire year by approximately 20 million euros. The investigations carried out so far, have not detected any additional impact to the Company's liquidity situation, nor any inappropriate cash outflows, leading the company to believe that it is an isolated incident that only affects the results of those subsidiaries this year.
As a result of Codere's firm commitment to compliance with all enforceable measures and applicable regulations, the Group relies on Internal Control, Audit and Compliance systems and procedures, which have been critical to detect such incidents.
Once these inconsistencies were identified and confirmed, a Board of Directors meetings was held, after which the corresponding significant event was issued to inform the competent authorities, complying with the criteria of maximum transparency and best corporate governance practices of Codere.
In addition, the Company's Board of Directors has commissioned a forensic analysis from an independent external consultant of recognized prestige. Once the results of this process are known, which will determine the origin of the inconsistencies and the source of the internal responsibilities or errors, the company will take the pertinent measures to correct the detected mismatches and ensure that they do not occur again.
Press release
The Annual General Shareholders Meeting of Codere S.A. confirms the strategic direction and current management of the Company, reaffirming its support for the Chairman
The Annual General Shareholders Meeting of Codere S.A. held today has adopted, with a large majority, all the resolutions proposed by the Board of Directors and has rejected all the proposals made by the shareholder MASAMPE, S.L. (company controlled by the Martínez Sampedro´s family), confirming its support for the management of the Company and its Board of Directors and rejecting strongly the exercise of the corporate action against its non-executive Chairman, Mr. Norman Sorensen.
Press release