Hi Steve
Due to the high volume of players yet to verify their claims, we are no closer to confirming when payments will be made, we have set a preliminary date of July this year to answer everyone's claims.
Regards
Katy
Hi Steve
Due to the high volume of players yet to verify their claims, we are no closer to confirming when payments will be made, we have set a preliminary date of July this year to answer everyone's claims.
Regards
Katy
As you are aware we were appointed Receiver - Managers of the Betonsports (Antigua) Limited on 20 September 2007 and subsequently liquidators on 8 February 2008.
Our duties are primarily to collect in the various assets of the company, and distribute those funds to the creditors of the company.
Asset realisations consist of a number of substantial debtors based in various jurisdictions around the world. In our efforts to realise these debtors we may now have to commence legal proceedings in those jurisdictions. Commencing legal proceedings in foreign jurisdictions is an expensive and time consuming exercise.
Despite circulating emails to 63,000 potential creditors of the company we have only received 7,967 claims. This is partly due to inaccurate email addresses held on the company's database. Over 28,000 emails were not delivered. We therefore have made an application to the High Court in Antigua and Barbuda to request sanction to contact those players who have not claimed by mail & public advertisement.
Therefore we still are not in a position to comment on the quantum and timing of any dividend distribution to creditors in this matter.
However, based on our current knowledge of the affairs of the company, the level of the company's liabilities and potential asset realisations we do not anticipate that any distribution to creditors will be any more than a few cents in the dollar.
If you have not already registered your claim with us and providing you agree the figure listed on the https://betonsports.vantisplc.com/ website, you should complete the request for information via the weblink at the foot of this notice.
In the event you are not able to accept the accuracy of the company's records in respect of your claim you will be required to submit your own reconciliation, together with copies of all transaction documentation to include proof of funding and full betting history.
We are still receiving a large number of emails on a daily basis asking for updates. We regret that we will not be able to reply to individual enquiries regarding general updates and will be only reporting to creditors on a periodical basis.
As and when we have anything significant to report to you we will write further, if not we do not anticipate reporting to you further until December 2008.
As you are aware we were appointed Receiver - Managers of the Betonsports (Antigua) Limited on 20 September 2007 and subsequently liquidators on 8 February 2008.
Our duties are primarily to collect in the various assets of the company, and distribute those funds to the creditors of the company.
Asset realisations consist of a number of substantial debtors based in various jurisdictions around the world. In our efforts to realise these debtors we may now have to commence legal proceedings in those jurisdictions. Commencing legal proceedings in foreign jurisdictions is an expensive and time consuming exercise.
Despite circulating emails to 63,000 potential creditors of the company we have only received 7,967 claims. This is partly due to inaccurate email addresses held on the company's database. Over 28,000 emails were not delivered. We therefore have made an application to the High Court in Antigua and Barbuda to request sanction to contact those players who have not claimed by mail & public advertisement.
Therefore we still are not in a position to comment on the quantum and timing of any dividend distribution to creditors in this matter.
However, based on our current knowledge of the affairs of the company, the level of the company's liabilities and potential asset realisations we do not anticipate that any distribution to creditors will be any more than a few cents in the dollar.
If you have not already registered your claim with us and providing you agree the figure listed on the https://betonsports.vantisplc.com/ website, you should complete the request for information via the weblink at the foot of this notice.
In the event you are not able to accept the accuracy of the company's records in respect of your claim you will be required to submit your own reconciliation, together with copies of all transaction documentation to include proof of funding and full betting history.
We are still receiving a large number of emails on a daily basis asking for updates. We regret that we will not be able to reply to individual enquiries regarding general updates and will be only reporting to creditors on a periodical basis.
As and when we have anything significant to report to you we will write further, if not we do not anticipate reporting to you further until December 2008.
However, based on our current knowledge of the affairs of the company, the level of the company's liabilities and potential asset realisations we do not anticipate that any distribution to creditors will be any more than a few cents in the dollar.
Game over boys.....a few cents on the dollar.
However, based on our current knowledge of the affairs of the company, the level of the company's liabilities and potential asset realisations we do not anticipate that any distribution to creditors will be any more than a few cents in the dollar.
Game over boys.....a few cents on the dollar.
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.
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.
In September of 2007, the country of Antigua appointed VantisPLC, a UK accounting firm, as the trustee in bankruptcy for BetonSports. In February of 2008 they were asked to oversee the liquidation of the insolvent company's assets. According to a statement by Vantis, when they took on the receivership, BetonSports showed almost $27 million in liabilities with approximately $16 million owed to players. Assets, however, only totalled $10 million with $8 million of that consisting of accounts receivable. Consequently, the players can not get all their funds back and the amount they receive will be determined by how much Vantis can recoup from debtors. Vantis seemed to suggest in an e-mail that severance payouts and a run on the bank by insiders of the company drained much of the assets. This is from that e-mail:
"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."
Regardless, the company sent e-mails to all 55,000 customers on file to instruct them that some money was available to them, but almost half of those emails bounced back. To date 9,000 customers have asked for compensation, but both Vantis and the Antiguan government do not believe that is sufficient to proceed with the distribution of funds.
"It's in the hands of the Antiguan government," a Vantis account representative told me, "but [it] clearly want[s] more people to register." The company has stated that they are awaiting the go ahead from Antigua to use other methods to convince more people to submit claims, and in fact plan on advertising in U.S. media. One reason why so many people have not submitted claims seems quite evident. Vantis stated the following in an e-mail to customers:
"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."
So it shouldn't be surprising that many customers are reluctant to submit claims for compensation if they are going to be on some U.S. government watch list, and if they can only expect pennies on the dollar back. The Vantis representative, however, did not agree and stated that players need not worry. "The government is interested in directors and U.S. businesses that may have dealt with BetonSports, such as Western Union. They aren't interested in players." To many U.S. customers, however, that assurance may be cold comfort. After all, the same thing was said about NETeller just prior to the feds seizing funds in transit, and in the end the feds convinced NETeller to release all personal customer information to them before agreeing to release funds back to players.
Asked what fees the company will receive for the liquidation, Vantis was surprisingly blunt. "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."
Since it is not being paid an hourly rate, it is in the company's best interest to make sure players submit as many claims as possible. Vantis is making no disclosure as to how much money they honestly believe they can recuperate, but recovery rates of about 80% in these types of situations is considered reasonable. Assuming the company can get back 80% of the $8 million accounts receivable, that would bring the total payable to creditors to about $8 million. Other creditors (besides players) are able to submit claims for compensation, but the Vantis rep made it clear that all creditors are unsecured, so player accounts will have the same right to the money as businesses that are owed by BetonSports.
I asked one bettor who has a substantial balance in his account whether he plans to submit a claim given the assurances by the Vantis rep that the U.S. government wouldn't be pursuing bettors and that person actually laughed. "I believe the author of that e-mail which says I can get 50% of a Nigerian king's multi million dollar fortune more than I believe my government," the bettor asserted. "In fact, I'm not confident this crowd running the government is capable of telling the truth, especially those in the Treasury." The bettor confirmed he is owed well into four figures but says that if the Antiguan government is holding out for over 25,000 claims for compensation to proceed he'll be lucky to see 1/10th of the amount owed to him. "Do you think I'm willing to risk an IRS audit or the police showing up on my doorstep to get a dime or two back? Forget that."
Vantis is clearly anxious to start paying back creditors, but said the decision is with the Antiguan courts and only they can give the go ahead. It appears the company will start advertising in newspapers, sports magazines and possibly TV or radio in the United States to get the message across that the money is there and people only need to submit a claim to get back some of what is owed to them.
To make a claim for compensation, bettors can go to https://betonsports.vantisplc.com, put in their credit reference # (account number) and Vantis will take it from there. Unfortunately Vantis has made it quite clear that they have no way of knowing exactly how much people can expect since the final amount of funds available is still up in the air.
06-23-2008
Hartley Henderson
MajorWager.com
henderson@majorwager.com
In September of 2007, the country of Antigua appointed VantisPLC, a UK accounting firm, as the trustee in bankruptcy for BetonSports. In February of 2008 they were asked to oversee the liquidation of the insolvent company's assets. According to a statement by Vantis, when they took on the receivership, BetonSports showed almost $27 million in liabilities with approximately $16 million owed to players. Assets, however, only totalled $10 million with $8 million of that consisting of accounts receivable. Consequently, the players can not get all their funds back and the amount they receive will be determined by how much Vantis can recoup from debtors. Vantis seemed to suggest in an e-mail that severance payouts and a run on the bank by insiders of the company drained much of the assets. This is from that e-mail:
"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."
Regardless, the company sent e-mails to all 55,000 customers on file to instruct them that some money was available to them, but almost half of those emails bounced back. To date 9,000 customers have asked for compensation, but both Vantis and the Antiguan government do not believe that is sufficient to proceed with the distribution of funds.
"It's in the hands of the Antiguan government," a Vantis account representative told me, "but [it] clearly want[s] more people to register." The company has stated that they are awaiting the go ahead from Antigua to use other methods to convince more people to submit claims, and in fact plan on advertising in U.S. media. One reason why so many people have not submitted claims seems quite evident. Vantis stated the following in an e-mail to customers:
"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."
So it shouldn't be surprising that many customers are reluctant to submit claims for compensation if they are going to be on some U.S. government watch list, and if they can only expect pennies on the dollar back. The Vantis representative, however, did not agree and stated that players need not worry. "The government is interested in directors and U.S. businesses that may have dealt with BetonSports, such as Western Union. They aren't interested in players." To many U.S. customers, however, that assurance may be cold comfort. After all, the same thing was said about NETeller just prior to the feds seizing funds in transit, and in the end the feds convinced NETeller to release all personal customer information to them before agreeing to release funds back to players.
Asked what fees the company will receive for the liquidation, Vantis was surprisingly blunt. "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."
Since it is not being paid an hourly rate, it is in the company's best interest to make sure players submit as many claims as possible. Vantis is making no disclosure as to how much money they honestly believe they can recuperate, but recovery rates of about 80% in these types of situations is considered reasonable. Assuming the company can get back 80% of the $8 million accounts receivable, that would bring the total payable to creditors to about $8 million. Other creditors (besides players) are able to submit claims for compensation, but the Vantis rep made it clear that all creditors are unsecured, so player accounts will have the same right to the money as businesses that are owed by BetonSports.
I asked one bettor who has a substantial balance in his account whether he plans to submit a claim given the assurances by the Vantis rep that the U.S. government wouldn't be pursuing bettors and that person actually laughed. "I believe the author of that e-mail which says I can get 50% of a Nigerian king's multi million dollar fortune more than I believe my government," the bettor asserted. "In fact, I'm not confident this crowd running the government is capable of telling the truth, especially those in the Treasury." The bettor confirmed he is owed well into four figures but says that if the Antiguan government is holding out for over 25,000 claims for compensation to proceed he'll be lucky to see 1/10th of the amount owed to him. "Do you think I'm willing to risk an IRS audit or the police showing up on my doorstep to get a dime or two back? Forget that."
Vantis is clearly anxious to start paying back creditors, but said the decision is with the Antiguan courts and only they can give the go ahead. It appears the company will start advertising in newspapers, sports magazines and possibly TV or radio in the United States to get the message across that the money is there and people only need to submit a claim to get back some of what is owed to them.
To make a claim for compensation, bettors can go to https://betonsports.vantisplc.com, put in their credit reference # (account number) and Vantis will take it from there. Unfortunately Vantis has made it quite clear that they have no way of knowing exactly how much people can expect since the final amount of funds available is still up in the air.
06-23-2008
Hartley Henderson
MajorWager.com
henderson@majorwager.com
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