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UB and Absolute Poker Solvency in Question

Business, 2011-05-05, by Ozone

UB and Absolute Poker (UB/AP) which combined represent one of the three sites to be indicted by the DOJ on April 15th may be headed for bankruptcy. An MSNBC article reported yesterday that Madeira Fjord, a Norwegian company that represents shareholders of the poker website's parent company, Blanca Games, plans to file for bankruptcy. Maderia Fjord says that Blanca Gaming has told them they are unable to make any payments towards their debt obligations due to having, "no cash on hand and no prospects for any cash flow for the foreseeable future."

This news came right on the heels of an announcement that UB/AP are laying off 95% of their staff.

Today, Blanca Games issued a press release claiming that reports of their impending bankruptcy are erroneous. The press release states, "The apparent confusion over this issue stems from the fact that Blanca recently informed a debt holder, Madeira Fjord, that it was terminating debt payments to, and its relationship with them. As a result, Madeira Fjord apparently filed a notice of bankruptcy in Norway. This notice has no negative impact upon Blanca, the operating company, or its brands."

The company also announced they are increasing their maximum weekly withdraw limits to $1,000 for Visa withdraws and $500 for other methods. They also stated that, "the company's legal counsel is in continuing discussions this week with the U.S. Attorney's office to formalize an agreement that would facilitate the return of funds to U.S. players."

Also released yesterday was a blog by Haley Hintze featuring what appear to be internal UB emails in which a man who operated UB's customer service center resorts to threatening a company official with going to the FBI if he does not receive the $2.7 million UB owes to liquidate its customer service employees. Hintze was a leading journalist in uncovering facts about the UB superuser scandal of 2005-2007.

While UB/AP's future remains unclear, the editors of PokerTips would like to remind their readers that we firmly recommend against depositing at either UB or Absolute Poker to participate in real-money online poker games as part of our belief that your money is not safe there.

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