Friday June 15, 2012 : PINNACLE ENTERTAINMENT SUCCESSFULLY BIDS FOR FS AND G (Update)
Major creditor wins in bankruptcy bidding…but the legal scrapping is not over yet
The court-ordered bankruptcy auction of Federated Sports & Gaming, Inc., parent of the Epic Poker League, was won Thursday by Pinnacle Entertainment, Inc. with a winning bid of $4.5 million for the combined assets of Federated Sports & Gaming, Inc., Federated Heartland Inc., the Heartland Poker Tour and the Epic Poker League.
Pinnacle was one of the largest creditors of the failed company, owed around $2.1 million, which it loaned FS&G earlier this year. There is speculation that the company will offset the loan debt against the purchase price, although that has not been confirmed.
The new owner has yet to publicly announce what it plans to do with the acquisition, but it appears certain that further litigation will take place involving other creditors, who are also owed large sums of money by FS&G.
Over $8 million in debt was accrued in FS&G's short life, during in which it generated only around $50,000 in revenues.
Among the more interesting information disclosed in the court proceeding was the fact that FSG registered more than 400 domain names, many of them apparently irrelevant to its activities.
Ironically, one among these was epicpokerfailure.com!