Chapter 11 Bankruptcy Protection Filed by Federated Sports & GamingMonday, March 5th, 2012 by Nadia
Epic Poker League (EPL) and Heartland Poker Tour’s (HPT) parent company, Federated Sports& Gaming (FS&G) announced that it has filed for Chapter 11 bankruptcy protection. Jeffrey Pollack, the former commissioner of the World Series of Poker (WSOP) released a statement on the website of FS&G this week. Pollack stated that the company is in need of a fresh start.
Epic Poker League Inaugural Session on Hold
Due to the decision to file Chapter 11 bankruptcy protection by FS&G, the inaugural event of the EPL has been put on hold. A $1 million freeroll tournament and an event in the EPL have also been delayed due to this. Reports suggest that a letter has been sent by commissioner Annie Duke to all qualified EPL players explaining the situation. Duke mentioned that FS&G intends to run EPL season 1.
The filing does not imply the end of FS&G’s or any of its initiatives. Poker pro Matt Glantz explained the Chapter 11 bankruptcy on his blog stating that FS&G will continue to reorganize its debts now. If the company fails to handle its debts within a reasonable time period, liquidation of assets (chapter 7 bankruptcy) will come into play.
Dedication of FS&G Team – Responsible for Chapter 11 Filing
The dedication of the FS&G Team is the key motivating factor behind the filing of the Chapter 11 bankruptcy protection, according to Pollack. He added that the whole team, including contractors, employees and partners of the company are extremely talented and hardworking. All of them have put their heart into the business. The FS&G reporting team includes poker journalists like Allen Rash, Jay Newnum, Jennifer Newell and Michael Craig.
According to Pollack, the bankruptcy filing will not have nay effect on FS&G’s assets. Some of the key initiatives of the company are the Global Poker Index, Facebook’s Epic Poker game, the Heartland Poker Tour and epicpoker.com. FS&G aims at continuing these initiatives with more innovations in future.
Heartland Poker Tour to Continue Operating
A spokesperson of the HPT, Jen Mastrud stated that the poker tour will continue operating. St. Louis is the biggest event of the poker tour and it is on. This year, the poker tour is celebrating its 100th tournament. Satellites for the main event have already started. The main event to be hosted by River City Casino is starting next week.
FS&G’s Financial Situation
FS&G has only $15,000 available cash when its debt amount is close to $115,000. 2 key creditors of the company are Pinnacle Entertainment and All In Productions. Prior to the Chapter 11 filing by FS&G, there were rumors in the poker circuit that the company will be purchased by Pinnacle Entertainment. FS&G owes a little above $3.8 million to the two creditors.
The announcement of the filing of Chapter 11 by FS&G came as a shock to the poker community. Many poker pros expressed grief regarding the possibility of the EPL closing. Although the Chapter 11 filing doesn’t mean the end of FS&G, the future of the company seems to be dark.