Gala Coral boss says odds-on for debt deal

By Tom Freke and Zaida Espana

LONDON, Oct 23 (Reuters) - British gaming company Gala Coral expects to agree a restructuring deal in the coming months, its chairman said, seeking to clean up a balance sheet laden with 2.7 billion pounds ($4.5 billion) of debt.

Gala's board of directors is meeting on Friday to discuss a proposal from a group of mezzanine lenders, led by Intermediate Capital Group (ICP.L) and Park Square Capital, who have offered to cut their debt in exchange for a stake in the company and representation on the board. [ID:nLL292065]

Neil Goulden, group chairman, said on Thursday that Gala's recent performance will help to secure a debt deal in the coming months.

"The combination of solid trading and strong cash flows will allow us to lead a successful restructuring and ease the current constraints on business growth," he said in a statement that was emailed to the press.

The company generates about 300 million pounds in free cash flow, he also said.

For Neil Unmack's column on Gala Coral, click on [ID:nLN339117]