Gala Coral restructuring expected in the New Year

* Gala restructuring expected in New Year, says chairman

* Chairman says good progress being made

LONDON, Dec 21 (Reuters) - British gaming group Gala Coral will not tie up its debt restructuring before Christmas as previously hoped, the group's chairman said, as lenders and private equity suitors vie for control of the gaming giant.

Gala Coral, home to bingo halls and a chain of bookmakers, has come to signify the woes of the private equity industry.

Its owners -- Candover (CDI.L), Cinven [CINV.UL] and Permira [PERM.UL] -- risk losing control of a business struggling with 2.7 billion pounds ($4.4 billion) debt.

Executive chairman Neil Goulden said on Monday the company was making good progress towards a debt restructuring. "We continue to believe that a consensual restructuring is a viable and realistic prospect," he said.

Any such restructuring would require the agreement of senior debt holders, mezzanine debt holders, equity owners and company management.

Gala's mezzanine debt holders, owed 540 million pounds, tabled a proposal in October to convert their debt into equity. They are led by Intermediate Capital Group (ICP.L) and Park Square. [ID:nL7575569]

While mezzanine holders are seen as front runners to agree a deal, the company has since received counter proposals from private equity firms Blackstone (BX.N) and Apollo Management [APOLO.UL], a source familiar with the process said. (Reporting by Simon Meads; Editing by Dan Lalor) ($1 = 0.6200 pound)