Full Tilt Poker Releases Statement on Financial Situation

Full Tilt Poker has released their latest statement regarding their financial situation.  This time, they released the statement to PokerStrategy.com.  The statement is below:

Full Tilt may need to lay off as many as 250 employees.

“On April 15th 2011 the United States Department of Justice unsealed a federal indictment against a number of individuals employed by major online poker operators. After the issuance of that indictment and a related civil case brought by the United States government, Full Tilt Poker withdrew from the US market. Then in a related action, on June 29th, 2011, Full Tilt Poker had its operating licenses suspended by the Alderney Gambling Control Commission.

As a result, Pocket Kings Ltd. (provider of marketing and technology services to Full Tilt Poker) has adopted a cost optimization program and estimates that they need to reduce their costs by approximately €12m. This program is intended to streamline the company’s operations in order to better position itself for future growth and profitability in Full Tilt Poker’s markets outside of the U.S.

If all of the required cost savings were to be achieved through redundancies, approximately 250 positions could be affected; however the exact number cannot be confirmed until the conclusion of a consultation process with its workforce.

Notwithstanding the foregoing, Pocket Kings firmly believes it has a very strong future in Full Tilt Poker’s Non-US Markets, and is fully committed to ensuring Full Tilt Poker restores the site and repay players in full. To this end, Full Tilt Poker has retained Sea Port Group Securities, LLC as its financial advisor with regard to raising capital and/or assisting in securing a strategic partner in order to fund continued operations of Full Tilt Poker’s non-U.S. business. The Company is in active discussions with several parties and will provide a further statement in due course.”

While Full Tilt can be commended for taking cost cutting measures, it seems that €12 Million is a small sum considering the $150 Million debt owed to at least U.S. players.  Also, one has to wonder if cutting as many as 250 workers from staff will have an adverse affect on a site that will need to work at peak efficiency once they are able to reopen, assuming they are able to achieve this goal.

That later part of the statement should be interpreted as Full Tilt admitting that they have yet to secure a investor in the company.  If this is the case, one has to wonder whether Full Tilt will be able to get their license renewed when their trial reconvenes on Monday.

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