Bitter relationship between Colony Capital, the owners of the troubled Atlantic Club in New Jersey and Pokerstars parent The Rational Group was increased last week when Rational succeeded in obtaining a temporary restraining order as the two companies fought over whether the casino acquisition could go forward.
Colony is attempting to derail the deal in which Rational has already invested more than $11 million and even asked an Atlantic County court for an immediate cancellation of the temporary injunction prior to a court hearing scheduled for Friday May 17.
In the filing Colony attorneys claim that Pokerstars had failed to prove it would suffer irreparable harm should the injunction not be granted: “It would be a catastrophic result for the Atlantic Club if the temporary restraining order is not vacated and the request for a preliminary injunction is not denied.”
They asserted that: “Sellers would almost certainly miss the opportunity to pursue other options during the critical summer season and prior to the November 2013 launch of online gaming in New Jersey.”
Regarding the cited time constraints on the original contract that were not met due to licensing delays, Colony thinks that Pokerstars wants to extend the time limit for it to become licensed although there are serious doubts it "...will ever obtain [regulatory approval] in New Jersey.”
In their filing, Atlantic Club's owners claim they only became aware in March this year that Pokerstars officials “...were associated with serious criminal activities more extensive and unresolved than previously disclosed.”
Those "criminal activities" refer to the Black Friday indictments on which Pokerstars spent hundreds of millions of dollars in achieving a settlement with the US authorities and helping to resolve the subsequent Full Tilt Poker debacle.
Your feedback
Please enter your comment.
Your comment is added.
