Purple Lounge’s torrid time continues and the bell may be tolling the death knell for the poker site but are players bankrolls safe? With no extra news having been released over the weekend pokerQ4 look into what has happened and if players will get their money back.
The directors believe that Purple Lounge has suffered as a result of negative trade press (much of which the directors consider totally unfounded) particularly surrounding the litigation brought against one of the Company’s subsidiaries by CD Casino.com Limited.
Other factors may have also come into play. Purple Lounge migrated from Microgaming to IGT Entraction under a dark cloud of rumours. The move, no matter how it came about, has appeared to not work out as was intended.
The Purple Lounge website suddenly went down last week with no announcement by the poker site. Then last week Media Corps, the company in control of Purple Lounge, issued a statement that does not bode well for them, Purple or its players hoping to get hold of their money quickly.
As a result of the recent losses, and resulting impact on the Company’s cash position having continually funded the losses, the directors are in the process of considering a number of options for Purple Lounge as a means to control the losses and, in doing so, preserve the Company’s cash and value in its other divisions.
Purple Haze
What is surprising and interesting is one line from the Media Corps statement. Media Corps have suspended Purple Lounge after not being paid any monies owned by the poker site they had acquired. In October 2009.
Media Corp has not received dividends or cash payments from Purple Lounge during its ownership and has loaned over £900k in the last few months.
And after not receiving any monies due in 2 years they then loan them £900,000? While that may seem crazy to normal folk it seems to relate to acquisitions and takeovers that have happened in the past and more being discussed or happening now and in the future.
The options under consideration may be directly impacted by the outcome of the Company’s stated intention of undertaking an acquisition or acquisitions. In the meantime the Company has temporarily suspended the site www.purplelounge.com.
Most players would recognise the website as www.purple-lounge.com
Players funds safe?
The hows, whys and whatevers do not really bother most of us, as it does not change the past, but it can change the future of our bankrolls. If you were silly enough to still have funds in there after all the issues of delayed payouts over the last few months. Operational and payout delays during the move and a week or so after the move may have been sort of OK but the rumoured continued delays and issues were worrying signs.
As at 31 March the Company had cash balances of £400k with an additional £250k received on 4th April 2012 from the disposal of loss making publishing assets. The directors hope to publish the full interim results by 31st May 2012.
Are Purple Lounge players funds safe? They were licensed with the Malta’s LGA but after their move to IGT were no longer under the protection of the LGA and were applying for a licence in a new jurisdiction. Hopefully no one one has done a Full Tilt during the chaos of the changeover.
With Media Corp behind them you would suspect that everything has been done by the book and that even if it does go all tits up players funds are at least guaranteed. You may not be able to get hold of them for a while but you may be able to get hold of them eventually.
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