Sources of the company said that the decision to remove Villaseca is common in these processes in which an independent external investigator tries to know the reasons why they have discovered "certain inconsistencies" in their results, as defined by Codere in its official statement a few days ago. Villaseca’s responsibilities have passed to the CEO, Vicente Di Loreto.
Codere reported that its internal control mechanisms had detected irregularities in the report of the accounting results referred to 2019 of three of its Latin American subsidiaries (Mexico, Panama and Colombia). Villaseca is the head of all the countries in the group, with the exception of Italy, according to the official organization chart.
The preliminary analysis of these inconsistencies estimates their maximum impact of around 13-18 million euros, on the results published in the first half of the year, which reduces the forecasts of gross operating profit or adjusted ebitda for the entire year by approximately 20 million. Codere has commissioned an expert US company in these cases an in-depth analysis of the numbers and has asked it to accelerate it as quickly as possible to be able to present the final conclusions while presenting the results of the third quarter, in the first week of November.
With this, the group intends to dissuade all doubts generated among investors by the veracity of the accounts, which has resulted in a reduction of their credit rating by the agencies that measure their solvency, as Standard & Poor's recently did.
Official sources of the company indicate that once this process determines the origin of the inconsistencies and the root of the internal responsibilities or errors, it will take the appropriate measures to correct the detected disagreements and ensure that they do not happen again.
Source: GMB / El Confidencial
