Gala Coral: mezzanine’s lucky hand

Neil Unmack Mezzanine debtholders have had a rough ride in recent distressed situations. But they have the upper hand in the looming restructuring of UK gambling group Gala Coral. They should savour this rare experience. Gala is almost certain to breach covenants on its 2.5 billion pounds of borrowings at the next test in February. Anticipating this sorry situation, junior debtholders Intermediate Capital Group , the listed finance house, and Park Square Capital, a London-based credit fund, ha...