Gala Coral is to restructure its debts in a process that will transform the company's board of directors.
The Financial Times reports that sources close to the matter said the company’s shareholders have agreed to cede control of the group as part of the restructuring of its £2.5bn debt.
Gala’s private equity owners are understood to have agreed with the holders of the groups’ mezzanine debt that these debt holders will be represented equally on the board.
According to the newspaper, the agreement - if passed by the existing board - will see a new board comprise three representatives from the private equity backers, three from the mezzanine debt holders, two management representatives, the chairman and an independent director.
