Management overhaul likely to follow FTP takeover
Talks with original mystery investor progressing despite expiry of exclusivity agreement.
Any takeover of Full Tilt Poker (FTP) would likely require a change of management as well as one of ownership, a lawyer representing the company has told eGaming Review.
Discussions are still ongoing between FTP and a number of potential unknown bidders as the company looks to secure an investment before the resumption of its hearing with the Alderney Gambling Control Commission (AGCC) scheduled to take place by 15 September.
Despite its exclusivity agreement coming to a close in recent weeks, the original investor which came forward following FTP’s licence suspension is still the “furthest along”, according to Jeff Ifrah, one of several attorneys from different firms called upon to represent the operator.
The investor in question is, to date, the only one that has entered into discussions with the United States Department of Justice, with a settlement seemingly a necessary precursor to any takeover, although other parties have reportedly expressed varying degrees of interest. The acquisition of the operator, however, has been delayed as the date for the resumption of FTP’s adjourned hearing edges ever closer.
“Everyone has their eye on that date, nobody wants to come to September 15th and not have a deal which is either finalised or close to finalisation to the point that it can be shared with Alderney and result in the extension of that date,” Ifrah said.
Discussing the future of Full Tilt following any potential investment, Ifrah explained that “The regulator has made its concern about prior management known, and obviously I think that any investor would want to adhere to those concerns and eliminate those concerns.”
“I’m not directly involved in any of those discussions but I assume if everything goes to plan then the announcement will bring not just a new owner and new investor but also an entirely new management team, and I assume that will all be well-coordinated and closely coordinated with the regulators,” he added.
He went on to assure players that their repayment remains the primary target, adding that “I assume there’s going to be a transition period [after any investment] and we hope that it’s not going to take that long to turn the lights back on and begin facilitating player withdrawals and obviously continue playing.”
Ifrah Law LLC, the law firm at which Ifrah is a partner, is also representing eight poker players belonging to ‘Team Full Tilt,’ in the class action lawsuit filed in late June, and was behind the motion for dismissal filed on behalf of the eight individuals (and five corporate entities) last Friday. A ninth player, John Juanda, is represented by a different firm and has filed a separate motion to dismiss.
Juanda’s legal counsel were unavailable for comment, although Ifrah did explain the timing of the latest filing.
He said: “We are disappointed the acquisition of FTP has been delayed again. A key term of the acquisition is the repayment of players and I do think the acquisition when finalized will moot this law suit. However, until then, there are court deadlines that need to be followed and we will of course adhere to such deadlines while protecting our clients’ interests.”