Lenders plan break-up of Gala Coral

LONDON, England -- As reported by the Guardian: "Debt-laden gambling group Gala Coral could be broken up and parts sold off to secure urgently needed cash for the private equity-owned business, according to plans being drawn up by its leading lender, the Royal Bank of Scotland.

"The RBS proposal comes in the midst of restructuring talks and ahead of a major debt deadline for the gambling group...

...The bank's proposal appears to have been worked up without consulting Gala Coral, which has hired investment bank Lazard to look at restructuring options, including a partial debt-for-equity swap. Gala Coral told the Observer: "We are not looking to sell off assets or break up the group. We have £200m on the balance sheet and we are not seeking an equity injection."

But RBS, which is majority owned by the taxpayer, has approached a number of potential investors inviting them to take an opportunistic stake in the gambling group or to bid for any of its bingo, casino, betting-shop or online divisions..."