Updated Thursday, May 5th. Shareholders of Madeira Fjord, a debt holder for Blanca Gaming, the parent company of poker’s Cereus Network, have sent an email to shareholders stating that they likely will be filing for bankruptcy. The actions come in the wake of the Department of Justice’s indictment and seizure of Cereus Network (Absolute Poker and UltimateBet) assets resulting from the indictments of the three major poker sites.
Since Black Friday the situation for Absolute Poker and UltimateBet has steadily gone downhill. The network continued to allow U.S. Player to play for real money but froze all cashouts and they were slow to respond to the indictments unlike their competitors PokerStars and Full Tilt. Non-U.S. players had been limited to a $250 max withdrawal amount per week and the offices of Cereus in Costa Rica have since been shuttered with over 90% of the workforce laid off. In addition all equipment and servers have been removed from the building.
The following letter was sent to shareholders of Madeira Fjord, and released by Holdem Poker Chat:
Dear xxxx Shareholder,
Since the last meeting of shareholders, there have been a number of developments that affect our Company.
Most importantly, Blanca Gaming has provided notice to our subsidiary Avoine that it is currently unable to make any payments toward its debt obligations. Additionally, Blanca has further advised that there will be no future payments.
Over the past 60 days, the Company has accumulated current debts in excess of $250,000 which are increasing at $100,000+ per month. These obligations are primarily legal and professional fees in Norway.
With no cash on hand and no prospects for any cash flow for the foreseeable future, the Board of Directors is required by Norwegian law to enter the bankruptcy process. The Oslo court will appoint a Receiver who will review the affairs of the Company including the assets, liabilities, and its recent transactions. After a full assessment, the Receiver will make a determination how to enforce any applicable rights, obligations, and obtain the maximum value for its assets in the best interest of the Company.
As the Receiver is a court appointed 3rd party, we can be assured that the Receiver will evaluate all relevant options including any applicable soliciting proposals from interested parties related to the assets of the Company. Funds accumulated through the Receivers’ efforts will be disbursed according to Norwegian law.
As of the date of the filing, the Board of Directors is relieved of duty, and all future matters are in the sole control of the Receiver.
Madeira Fjord, AS Board of Directors