Insolvency proceedings initiated after talks collapse
Mybet Holding’s management board have confirmed this (Tuesday) afternoon their intention to file for insolvency. The board is preparing an application to start insolvency proceedings after talks with a strategic investor collapsed.
The company initially appeared to have bought some time when a non-exclusive term sheet was signed last month with an unnamed investor. They were, however, unable to reach a resolution.
“The background for the application for the opening of insolvency proceedings is the failure of discussions with potential investors,” the company said in a statement.
“Today, the discussions with a strategic investor reported… on July 13 regarding the possible sale of the online business of Mybet Holding was closed. These talks failed due to conditions set by the investors which could not be fulfilled.”
According to a statement released by the board, the company currently owes €4 million in sports betting taxes. As a result, it faces “imminent illiquidity”.
The board also said that a contributing factor towards the initiation of insolvency proceedings was the decision of the Frankfurt Tax Office to reject an application filed by the group’s Malta-based company, Personal Exchange International, to suspend enforcement regarding outstanding sports betting taxes.
The company also released a statement reassuring customers that they would not be negatively affected, as mybet operates under MGA license requirements:
"While insolvency procedures are under way, existing customers should not be affected as Mybet operates under the Malta Gaming Authority license requirements which protect customers in numerous ways. The service continues to be available for customers until further notice. So currently there should be no effect."
Mybet’s share price has plummeted since the company announced month-long talks had stalled after “differences of opinion concerning the implementation of strategic and operational collaboration in the online sector”.
An application covering all three of Mybet’s German group companies will be submitted to the relevant local court this Friday.
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