Absolute Poker & UltimateBet: Bankruptcy News Premature?
Absolute Poker and UltimateBet have released a new statement in which they deny the accusation of bankruptcy and announce an increase in withdrawal limits for non-US players.
Yesterday we reported that UltimateBet and Absolute Poker, both part of the Cereus Network, which is owned by Blanca Gaming Ltd., had filed for bankruptcy. This news was based on reports of several reliable sources and an e-Mail sent to a Norwegian creditor that no further payments would be made.
Blanca Gaming has now tackled these allegations by issueing a new press release, stating that they are not bankrupt but the aforementioned debt holder is filing for bankruptcy. However, this bankruptcy would have no effect on Blanca's operations.
The statement confirms that the vast majority of the staff had been laid off as part of a restructuring process, but that re-hiring of key personnel is already underway.
"Number of processed cashouts has been increased"
In the statement, Blanca Gaming also addresses cashout worries from non-US customers and states that the number of processed cashouts has already been increased.
The press release also announces new withdrawal limits which have been increased to $1,000 via VISA and $500 via all other cashout options. A limitation of one cashout per week and player remains.
"We are working to return non-U.S. withdrawals to normal service levels as quickly as possible."
A solution for US players is apparently also currently under development.
The full statement can be found below:
(“Blanca”), operator of online poker rooms Absolute Poker and UB, issued the following statement today:
As previously stated, Absolute Poker and UB ceased their U.S.-facing operations due to recent legal developments in the United States. The company is currently restructuring and is focusing its resources on consolidating its non-U.S., rest-of-the-world operation and software business. In order to have a more efficient and successful future business, an immediate need to downsize and streamline operations significantly at both online poker rooms has been required. Absolute Poker and UB continue to operate their non-U.S.-facing business.
This decision comes after considerable review and analysis of the impact that ‘Black Friday’ has had on the business as a whole. The workforce has been liquidated, and the process of rehiring approximately 20% of staff in key positions has commenced. All affected employees have been informed of this necessary restructure.
A company spokesperson said: ”We regret that we have been compelled to take these actions. We have worked tirelessly to create a truly amazing company that is filled with extraordinary people. We have always been and still remain fully committed to our employees and players. At the same time, we are confident that this restructuring will strengthen the company and its future.”
The Company spokesperson also addressed erroneous reports that Blanca has filed for bankruptcy. The apparent confusion over this issue stems from the fact that Blanca recently informed a debt holder, Madeira Fjord, that it was terminating debt payments to, and its relationship with them. As a result, Madeira Fjord apparently filed a notice of bankruptcy in Norway. This notice has no negative impact upon Blanca, the operating company, or its brands. As stated previously, Absolute Poker and UB continue to operate their non-U.S. facing business around the world.
For non-U.S. players, Absolute Poker and UB have increased their maximum withdrawal limits to $1000 for Visa withdrawals and $500 for all other methods. The number of transactions being processed per day has been significantly increased as well. Players are still restricted to one transaction per week, but we are working to return non-U.S. withdrawals to
normal service levels as quickly as possible.
As confirmed earlier this week, the company’s legal counsel is in continuing discussions this week with the U.S. Attorney’s office to formalize an agreement that would facilitate the return of funds to U.S. players.
Source: PokerNewsDaily
