EY will stop auditing the accounts of the Codere group. This has been confirmed by the gaming company itself, which details that the consulting firm has communicated to it, through a letter dated October 23, its decision to “decline to stand for re-election as independent auditor of the accounts for Codere New Topco [ parent company of the group] and its subsidiaries”, so this will no longer be the one that analyzes the financial statements for the year that will end this December 31.
The consultant decides not to stand for re-election and will no longer sign the accounts for this year.
Codere is losing the bet in Mexico.
Codere adds that its audit committee “is currently searching for a new independent auditor” for its next accounts. EY was the auditor of the gaming group since 2016. Therefore, it has accumulated a total of seven consecutive years, including the first complete one after the restructuring that the company undertook, by which it passed into the hands of its bondholders and its parent company became domiciled in Luxembourg.
In its latest audit report, dated April 28 of this year, EY indicated the “existence of a material uncertainty that may cast significant doubt on the group's ability to continue as a going concern,” after the group's parent company , Codere Newtopco, recognized an attributable net loss of €477 million in the 13-month period ending December 31, 2022, and acknowledged a “slower recovery” than it expected in its business.
The company remains immersed in this recovery, as well as in the search for solutions to address its persistent cash flow tension. In this regard, Codere announced on October 27 the delay until March of the receipt of 100 million euros by its shareholders, which it had planned to receive on that date. Before, in September, it signed a bridge loan of 50 million to be able to continue its activity.
