Thursday, August 23, 2018

Mybet To File For Insolvency

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Mybet To File For Insolvency
Mybet To File For Insolvency

Management board of Mybet Holding announced this past Tuesday that the company is preparing to file for insolvency, soon after the demise of talks with a key strategic investor...

...The agreement with the said unnamed investor was not reached after the signing of a non-exclusive term sheet last month. The company owes €4 million in sports betting.

Bleak Ending

Mybet's official statement says that the background for the insolvency proceedings is the "failure of discussions with potential investors." Another big contributing factor is the Frankfurt Tax Office’s refusal of application that was filed by Personal Exchange International, Mybet's company based in Malta, that was supposed to "suspend enforcement regarding outstanding betting taxes."

"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,” reads the statement.

The Curtain Falls

After the talks with the investors have stalled, Mybet's share price has been in sharp decline. The talks were unsuccessful because of different opinions on the implementation of strategic and operational collaboration in the online sector.

The company's customers, however, will not feel the negative impact of this insolvency proceedings, due to the company's operations 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.”

Things were going quite well last year, when Mybet did a complete revamp of their sports and casino offerings and Evolution Gaming helped them enrich their live table games collection.

Source:

"Mybet preparing to file for insolvency", sigma.com.mt, August 22, 2018.

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