October 06, 2011

Full Tilt Poker equity stakes?

A rescue effort of Full Tilt Poker has been proposed by the family-owned French investment company. According to a source close to the issue, the alleged rescue plan could involve equity stakes to some of the troubled website’s thousands of customers.

According to the Wall Street Journal publication, Benham Dayanim, lawyer for the Groupe Bernard Tapie, said that “the Tapies may address Full Tilt’s liabilities by offering equity in a revived company to poker players owed the most money.” The WSJ report also implied that the Groupe Bernard Tapie is seeking investment from the current owners of Full Tilt. However, this move would mean they would be left with no management role in any new company.

After the whole fiasco of watching Full Tilt Poker fall apart, any kind of rescue efforts will not be smooth. There are plenty of hurdles that the Groupe Bernard Tapie must clear before any potential takeover can proceed. The biggest hurdle is notably an agreement from the US Department of Justice and a new operating licence after the Alderney Gambling Control Commission’s recent revocation.

The company said in a statement posted Thursday on the website pokerstrategy.com that the Alderney decision to revoke Full Tilt’s license “makes it more difficult to execute the sale of the company and hence repay its players” but that it “remains committed to repaying its players in full and continues in active negotiations.”

Full Tilt has player liabilities of over $300m.

The company has expressed their hope with bringing the situation out of the abyss, according to the source close to FTP.

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