Full Tilt Poker releases financial statement

Posted by Steve Ruddock on Sep 15, 2011 Posted in Legal Poker News, Poker Site News | No Comments »

On Wednesday Full Tilt Poker released their second statement in recent weeks, this time detailing the current financial plight of the company, and detailing some of the steps the company is taking in order to remedy the situation. The statement was issued to PokerStrategy.com –whereas the first statement was sent to PokerNews.com.

The biggest revelation in the statement was the “cost optimization” strategy Full Tilt Poker is undertaking, which will see them lay-off in the neighborhood of 250 employees from the Pocket Kings ltd offices in Dublin, Ireland.

Here is a look at the entire statement released by Full Tilt Poker:

“On April 15th 2011 the United States Department of Justice unsealed a federal indictment against a number of individuals employed by major online poker operators. After the issuance of that indictment and a related civil case brought by the United States government, Full Tilt Poker withdrew from the US market. Then in a related action, on June 29th, 2011, Full Tilt Poker had its operating licenses suspended by the Alderney Gambling Control Commission.”

“As a result, Pocket Kings Ltd. (provider of marketing and technology services to Full Tilt Poker) has adopted a cost optimization program and estimates that they need to reduce their costs by approximately €12m. This program is intended to streamline the company’s operations in order to better position itself for future growth and profitability in Full Tilt Poker’s markets outside of the U.S.”

“If all of the required cost savings were to be achieved through redundancies, approximately 250 positions could be affected; however the exact number cannot be confirmed until the conclusion of a consultation process with its workforce.”

“Notwithstanding the foregoing, Pocket Kings firmly believes it has a very strong future in Full Tilt Poker’s Non-US Markets, and is fully committed to ensuring Full Tilt Poker restores the site and repay players in full. To this end, Full Tilt Poker has retained Sea Port Group Securities, LLC as its financial advisor with regard to raising capital and/or assisting in securing a strategic partner in order to fund continued operations of Full Tilt Poker’s non-U.S. business. The Company is in active discussions with several parties and will provide a further statement in due course.”

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