Grupo Codere has notified investors that it must raise €100m [$108.5m] in capital as the heritage Spanish gambling firm “finds itself in a probable insolvency situation”.

[Thursday], Codere published an updated ‘reorganisation and refinancing plan’, outlining that a request for €100m liquidity financing to be added to the board’s ongoing ‘2023-to-2027 recovery programme’.

Codere maintains that it has achieved the initial objectives of its recovery programme initiated in 2021, recovering its performance in the markets of Spain, Italy and Argentina.

However, the company still faces “liquidity pressures” due to various factors, including “higher cash repatriation expenses from Argentina, increased competition in Mexico and Panama, slower recovery in key markets, and required normalisation of legacy payments.”