Online Poker News - No good news for 5050 Poker Players
4th of July 2012 - latestpokerbonuses.com
No more than 15% of the players’ account balance is expected to be paid back
5050 Poker Ltd’s players were addressed in the latest press release posted on the 5050 Poker Holding AB website in view of the actual payment concerns, unfortunately revealing no good news for the punters.
Apparently, 5050 Poker Ltd will be liquidated or possibly sold following the Maltese Lotteries and Gaming Authority's (LGA) request for guarantees for an amount exceeding the assets in the company.
The unfavourable news for players is that the value of available assets will be used to pay back players on a proportional ratio meaning that "there is no reason to believe that the ratio will be higher than 15% of the actual balance of the players’ funds," as per the company’s Board of Directors.
In relation to the company’s fiasco, 5050 Poker Holding AB's managing director Patrick Sjögren has been discharged while Directors of 5050 Poker Holding Cem Yeter and Olle Langenius are to carry out further investigation with a view to saving as much of the shareholders’ value as possible.
According to the 5050 Poker Holding AB's Board of Directors, Microgaming's “suddenly imposed table limit” and the subsequent termination of its operations along with fines were dealt out by Microgaming for "having too many winning players" resulting in a run on the bank by players effectively leaving the company with deficient funds to cover player balances.
Morever, the Board claims that the company's financial situation went unnoticed as the Board was provided untrue information on the player's fund, operational costs and the size of the company's assets.
The results of an internal investigation by 5050 Poker Holding AB reveal the following:
- The operational costs of 5050 Poker Ltd has for a long time exceeded the revenues, resulting in players’ funds being used in the operations of the company.
- Fines imposed by Microgaming in excess of Euro 150 000 had incorrectly been withdrawn from players' accounts.
The company's auditing firms will also have to answer a list of questions as both 5050 Poker Ltd and 5050 Poker Holding AB allegedly completed the audit procedures for the fiscal 2011 year.
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