Debt in the owner of Gala Bingo is trading at just at just 60 pence in the pound as City financiers worry about the company's ability to pay its bills.
Gala Coral debt was recently sold to Apollo Private Equity for just 60% of its face price, suggesting that the group which owns bingo halls, casinos and the Coral chain of betting shops is struggling under its debt mountain.
In 2008 Gala Coral's private equity backers took a 50% write down in the value of their stake in the business and the new chief executive slashed management jobs, eliminating 200 positions at the company's headquarters.
