DoJ approves Stars-Tilt deal
Deal worth US$731m, of which $330m will go towards the repayment of Full Tilt's American players and ends civil forfeiture proceedings for former Alderney licensee - In separate development Absolute Poker/UltimateBet to forefeit all assets to DoJ in exchange for dismissal of civil charges.
PokerStars’ long-awaited takeover of Full Tilt Poker has finally been given the green light after the $731m deal was approved by the DoJ in New York today.
The agreement will see the Isle of Man-based operator take over the assets of its fallen competitor while simultaneously reaching a repayment plan for Full Tilt’s players and ending the civil forfeiture proceedings against the former Alderney licensee.
A statement from Full Tilt said: “The government has agreed that all of Full Tilt Poker’s U.S. players will have an opportunity to request that they be compensated out of those funds for their losses.
“In addition, within 90 days, PokerStars will make available for immediate cash withdrawal or play the account balances for all of Full Tilt Poker’s non-U.S. players,” it added.
A transfer agreement signed by Tiltware board members Bitar and Howard Lederer and PokerStars executive board member Mark Scheinberg, among others, explains that “The transferee [PokerStars] shall not assume any liability or obligation in respect of the Forfeited assets or the Business, except as required by law.
According to court documents seen by eGaming Review, the forfeiture agreement covers 24 companies affiliated to FTP, including Tiltware and Pocket Kings, plus former Alderney licence holders Filco, Oxalic, Orinic and Vantage.
A statement from PokerStars, which has already refunded its own US players to the tune of more than US$100m since Black Friday, appeared shortly after FTP’s release.
Jeff Ifrah, partner with Ifrah Law, the Washington DC law firm which represented Full Tilt with Cozen O’Connor’s Barry Boss and Anne Madonia as co-counsel, said: “Full Tilt and PokerStars had the interests of the players and the future of online poker at heart “ we knew that getting the players paid had to be a part of this transaction. A lot of people pulled together to make this a win-win and it was very exciting and gratifying to be involved in.”
Other lawyers to have represented FTP and its associated companies for the duration of the negotiations include Tony Coles and Charles Gerada of London-based Jeffrey Green Russell Solicitors, and Tony O’Grady of Dublin-based Matheson Ormsby Prentice.
The transaction has no bearing on the criminal charges against founder Isai Scheinberg and head of payments Paul Tate, who were indicted along with nine others on April 15 2011, or the criminal charges against individuals tied to Full Tilt Poker. FTP chief executive Ray Bitar was arrested in New York earlier this month, and has pleaded not guilty to charges brought against him in a superseding indictment which also named Full Tilt director of payments Nelson Burtnick.
Rumours surfaced this morning that Burtnick has boarded a flight to New York from Ireland ahead of a potential arrest, however these are as yet unconfirmed and sources close to the matter have suggested to eGaming Review that Burtnick’s status had no bearing on Judge Sand’s ruling.