Since the announcement of the proposed deal between the shuttered online poker site Full Tilt Poker and the French investment company Groupe Bernard Tapie at the end of September, there has been a long silence regarding future actions. Two incidents over the past couple of days demonstrate that there is still a long road ahead if and/or when the tentative agreement for the sale of the company would actually be consummated.
Of perhaps most interest to those who have money owed to them by the company are the continuing negotiations between Groupe Bernard Tapie and the U. S. Department of Justice. For the first time since the agreement was signed, an attorney for GBT, Behnam Dayanim, commented that these negotiations were still ongoing and that GBT has yet to take control of Full Tilt Poker.
“We’re still working with Full Tilt Poker,” Dayanim stated, indicating that the deal was not fully complete as of yet. “We have a signed agreement that allows us to do the things we need to do to ensure we’re comfortable (taking over the company). We’re working productively, but any agreement ultimately depends on resolutions with the U. S. Department of Justice. We have to have that process work its way through to completion, but I’m optimistic right now.”
Dayanim wouldn’t comment any further on how those negotiations with the DoJ were going except to say, “It’s a process. The process is still going on and hopefully we’ll have some good news to report. I remain optimistic that we’ll be able to reach an outcome that allows for the Tapie group to proceed with the proposed plan. It’s Tapie’s intention to arrange for repayment of players.”
There are two points at question here for Groupe Bernard Tapie to resolve with the U. S. Department of Justice before they could actually assume control of Full Tilt. One, the Department of Justice’s civil suit that started the downfall of Full Tilt Poker – now known as “Black Friday” – is seeking damages of a reported $1 billion. Groupe Bernard Tapie is likely looking to have that number reduced, as it would be illogical for any potential buyer of a company to have that expenditure on a non-operative business.
Second, Groupe Bernard Tapie will probably ask the U. S. Department of Justice for repatriation of the funds that have been seized as a result of the DoJ’s actions. Although the actual numbers have been cause for dispute (estimates range from $115 million to well over $300 million), Groupe Bernard Tapie would probably want that money back in its coffers to pay back players who have funds on the site, which could total as much as half a billion dollars worldwide.
On the payment front, it is reported that Groupe Bernard Tapie has allegedly contacted European players by telephone with questions regarding that situation. After some benign questions as to if a person played on and had money on Full Tilt Poker, three potential payment options were offered:
1. Investment of the owed funds in the new Full Tilt Poker.
2. Cash out the entire balance with a significant penalty.
3. Payments of balance over an extended time span (expected to be a year).
If these reports are true, it is obvious to see that Groupe Bernard Tapie is looking to put as little money as possible into a potential buyout of Full Tilt Poker. Of the three options, the second one is perhaps the most concerning, as players shouldn’t be penalized for wanting their money back from a company that, in essence, took it from them in the first place. Although a percentage penalty has not been disclosed, it can be thought that it would be significant.
A month removed from what many online players believe was the “saving” of Full Tilt Poker and it is obvious that Groupe Bernard Tapie has yet to close any deal for the company. It is also obvious that GBT is – as any good business would do – trying to get the most return for any possible investment they would make. But should that come at the cost of the players or lighten the punishment that those involved with Full Tilt Poker previously should receive?
The options outlined are normal for businesses that become insolvent. Players are unsecured creditors. What should happen is a proposal be put to the players and other creditors in the pattern of any normal insolvency. Following a vote, a transaction would be completed. The way to get player confidence going forward is to have a trust account set up to secure obligations to players
I can’t see why this is so difficult. Tapie buys Tilt. Money is put in a secure account. Players that are owed monies are payed.
Bitar and the rest of them already were paid with all of the money they took prior to black Friday. The main thing here is to get the players money to them.
If Bitar and Lederman and the rest of the crooks think they have entitlement then they are sadly mistaken.
it seems that BTG is starting allready with a big managerial error,not to give less they should give more to the player even with interest if they want to be succesful,if they trie to cut from players money who in the hell will play for them in the future? adi