Fancy a flutter?

22 January 2010 By Neil Unmack Follow @unmack1

Apollo and Cerberus have teamed up with the investment bank to buy a slug of junior debt in Gala Coral. The new investors may have to pay up to win over the UK gaming group’s senior lenders. But if they succeed, they will have picked up Gala on the cheap.

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Goldman Sachs, Apollo and Cerberus have bought 130 million pounds of junior debt of UK gaming company Gala Coral. The debt was sold by asset manager ICG.

ICG had been working on a restructuring of Gala's debt with fellow junior debt holder Park Square Capital. The deal would have given the ICG and Park Square, and other mezzanine investors, ownership of the company. However, senior lenders who own 2.2 billion pounds of debt refused to approve the deal unless junior lenders pumped 150 million pounds of additional funds into Gala.

Apollo, Cerberus and Goldman paid 69 percent of face value for the debt.

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