Latest from Vantis (BOS Receivers)

[The Judge]

Following feedback from players/creditors/customers in this matter there now follows a more detailed update of the background and our progress in the Liquidation of Betonsports (Antigua) Limited (in liquidation).

Firstly, we have only been formally involved in this matter since September last year. Our appointment as Receivers was confirmed by the Gaming Regulator on the island of Antigua ("FSRC") on 20 September 2007, and we were later appointed as Liquidators of the company on 8 February 2008.

It is important to note that the company, and the whole Betonsports group, effectively ceased trading in July 2006 (14 months prior to our instruction) as a result of a Restraining Order issued against the group in the US, which was later converted to a full injunction. Naturally this had a devastating effect on the company's financial position. Over the following months contractual severance and termination costs in respect of the company's call centres, many hundreds of staff, supplier contracts, and finance contracts only served to further increase the liabilities of the company. On 22 November 2006 the FSRC obtained an order of the High Court in Antigua effectively freezing the company's assets and preventing ongoing trading or distribution of assets.

By the time of our appointment, the company’s books and records demonstrated that its realisable assets were less than the aggregate of its liabilities, or in short, the company was insolvent. A statement of the company's assets and liabilities provided by the Betonsports board of directors in February 2007, seven months prior to our involvement, shows assets of the company of $10million, and liabilities of $26.9million. Although the liabilities figure includes betters/players/customers balances of $6.8million, we now know that these players are owed over $15.8million (as per the company's database). The company is therefore insolvent, on a book value basis, by over $25million. It is a point to note that the US authorities have taken an active interest in this case, particularly in the actions of some of the Betonsports group directors, but we are unable to comment further as legal proceedings are ongoing.

Turning to the company’s assets, we received funds passed to us by FSRC (in respect of asset realisations recovered by it) of $2million. There are outstanding debtors globally of $8million, and it is these funds that we are attempting to collect in the relevant jurisdictions. We have a duty to assess the viability of pursuing these assets, by reference to legal advice and to attempt recovery where it is economic to do so. We have also received the approval of the relevant US authorities for the collection of these debts.

Turning to the creditors, the overriding obligation and intention of the High Court in Antigua, the FSRC, and indeed ourselves is to protect the interests of ALL creditors, and ensure that ALL creditors are contacted as far as possible. Many players have not been reached because they have invalid email addresses, or the database information held for them on the Betonsports system has been corrupted. The responses/claims from player creditors has been disappointing, and we are seeking the guidance of the Court in Antigua to circulate a national newspaper advertisement in the USA, and contact other players by regular mail where email contact has not been possible. All of these actions are under the supervision and sanction of the Court, and the authorities place great emphasis on reaching and paying as many of the players as possible from assets recovered.

With regard to Receiver/Liquidator fees we can advise you that the fee structure confirmed by the FSRC and the High Court in Antigua is 5% of asset recoveries and $20 per creditor claim agreed, reconciled to the Betonsports system, and paid. The 5% collection fee does not apply to funds passed to us by the FSRC. Legal fees and disbursements are charged to the Liquidation estate at cost.

This fee structure does not therefore encourage us to delay in bringing in assets as we are not being paid for our time, only our performance in collecting assets and reaching valid creditors.

As stated in our last email update, we are assessing the viability of legal proceedings to recover the $8million of debtor balances owed to the company. The Betonsports financial books and records are currently being scrutinised and inspected for this purpose.

In the meantime we can assure you that we are seeking the best possible outcome for all concerned.

However, we repeat the comments made in earlier reports in that it is currently impossible to estimate the timing and value of any distribution which may ultimately be returned to the players/creditors.

To register your claim if you have not already done so please complete the details via the weblink below, using your creditor reference XXXXX, to confirm your claim against the company.

https://betonsports.vantisplc.com/


If you do not wish to claim in this matter and do not want to receive any further emails from us please go to https://betonsports.vantisplc.com/cancel.aspx?creditor=77349

Yours sincerely
PETER WASTELL & NIGEL HAMILTON-SMITH
Joint Liquidators
For and on behalf of Betonsports (Antigua) Limited -In Liquidation