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AMAYA LODGES APPEAL ON KENTUCKY DISPUTE
Tuesday February 23,2016 : AMAYA LODGES APPEAL ON KENTUCKY DISPUTE (Update)
Posts a US$100 million supersedeas bond to stay enforcement of Wingate court order.
Online gambling group Amaya Inc. has issued an update on its legal struggle with the Commonwealth of Kentucky, reporting that it has filed a notice of appeal against the previously announced December 23, 2015 Kentucky trial court order for damages against its subsidiaries and has posted a US$100 million supersedeas bond to stay enforcement of the order during the appeals process.
Our readers will recall that the damages awarded by Judge Wingate for alleged Pokerstars illegal operations in the state prior to its acquisition by Amaya could amount to as much as $870 million.
The posting of the bond required the delivery of cash collateral in the amount of US$35 million and letters of credit in the aggregate amount of US$30 million.
"Amaya will continue to vigorously challenge the trial court's order," the statement reads, adding that there can be no assurance that Amaya's appeal will be successful.
Thw statement also references an apparent clash with previous Pokerstars owners and sellers of the company to Amaya, the Scheinberg family.
The heavily legal language advises:
"In late-January, pursuant to and in accordance with the procedures set forth in the merger agreement governing the acquisition of the PokerStars business, a subsidiary of Amaya submitted a notice of claim to the sellers' representative and escrow agent seeking indemnification for losses and potential losses caused by breaches under the merger agreement and requesting, among other things, that the escrow agent retain the then-remaining balance of the escrow fund established under the merger agreement in an aggregate amount equal to approximately US$300 million.
"Amaya has since received a notice from the sellers' representative initially disputing all claims set forth in Amaya's notice of claim. The disputed indemnity claims and release of the escrow funds will be resolved in accordance with the provisions of the merger agreement and escrow agreement."
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