While this is far from confirmed, according to an E-Mail first produced by the website HoldemPokerChat.com, and later picked up by MSNBC.com, the Cereus Poker Network of Absolute Poker and UB Poker will be filing for bankruptcy protection in Norway.
Apparently the parent company of the sites is known as Madeira Fjord (located in Norway), which represents the shareholders of Absolute Poker’s parent company Blanca Gaming, and in an alleged E-Mail posted at Holdem Poker Chat the following was sent to shareholders:
Dear Madeira Fjord, AS 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.
Sincerely,
Madeira Fjord, AS Board of Directors
While this is still unconfirmed, MSNBC was able to confirm through a source in Costa Rica –where the Cereus Poker Network is located—that approximately 95% of the 300 employees in customer support and marketing have been let go by the company.
The article also states that players, even outside of the US, have been unable to withdraw from Absolute Poker or UB Poker since Black Friday. Based on the evidence at hand –plus the 76% drop in traffic the network has experienced since Black Friday according to www.pokerscout.com – it would seem that players are unlikely to recover their money from either Absolute Poker or UB Poker.
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Written by Steve Ruddock on May 5th, 2011