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QUESTIONS CONTINUE ON PURPLE LOUNGE LIQUIDATION
July 12,2012 : PLAYER QUESTIONS CONTINUE ON PURPLE LOUNGE LIQUIDATION (Update)
Players are apparently not covered in liquidation of Purple Lounge UK
In the absence of clarifying communications from the new management of Purple Lounge parent Media Corp plc, players were left speculating on their fate this week after being told by liquidators that they were not regarded as creditors in the disposal of Purple Lounge UK.
InfoPowa readers will recall that Purple Lounge players were subjected to questionable excuses for slow pay practises earlier this year, which escalated into serious payment problems after Media Corp management Justin Drummond and Sara Vincent switched poker networks to Entraction.
The online casino and poker site subsequently 'suspended' operations, after which it was learned that Media Corp management had requested the Malta regulator LGA to cancel the Purple Lounge licence.
As bewildered players tried to find out what was happening - and were ignored - the Drummond-Vincent management team at Media Corp resigned and a new management took control, subsequently announcing that Purple Lounge was to be liquidated.
It emerged that player funds had not been segregated as required by the regulator, and the indications were that player deposits had been used to meet operational expenses under Vincent's Purple Lounge stewardship.
There were unconfirmed rumours of a forensic audit being conducted by the new management, which had also inherited a breach of contract claim by CD Casinos.com Limited in respect of Media Corp's former asset Gambling.com.
Last Friday, Media Corp used the London Gazette to announce that the respected London firm Baker Tilly had been appointed as liquidators of Purple Lounge UK.
However, when players called the liquidator to lodge claims they were informed that players were not on the creditor list supplied by Media Corp.
In a typical experience, one player related that he was told by Baker Tilly that "player creditors are creditors of Purple Lounge (Malta) Limited, a Malta registered company" and "Baker Tilly Restructuring and Recovery LLP, is not instructed in respect of any other company in the group".
Media Corp management has yet to clarify how its Purple Lounge Malta players are to be recompensed, but their silence is ominous, triggering adverse speculation about their intentions.
Players are currently considering legal avenues that may be open to them in order to claim the monies owed to them through either Purple Lounge Malta or Media Corp.
One theory is that players who are owed less than Euro 2000 and live in the EU could cheaply lodge a legal claim in Malta, but have the case heard in their country of residence.
But whether Purple Lounge Malta has the wherewithal to meet such demands is doubtful.
Meanwhile, the reputational damage is growing, with media reports noting that neither the Malta regulator nor Media Corp, despite its status as a listed company, protected its players...or is treating them with the respect they are entitled to as customers.
That could bode ill for any other online gambling enterprises or products that Media Corp may decide to launch in the future...trust is a major and invaluable commodity in this industry.
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