The Great White North gaming enterprise, Amaya, has inked a fresh funding arrangement with Isai and Mark Scheinberg, the prior proprietors of PokerStars. Amaya was staring down a February 1st cutoff to reimburse $197.7 million in liabilities tied to the 2014 acquisition. With the modified postponement, Amaya receives a three-month grace period on the due date in return for an unrevealed, non-returnable sum.
As you may recall, Amaya procured PokerStars from the Scheinbergs for a hefty $4.9 billion back in 2014. Amaya shelled out $4.7 billion to the Scheinbergs’ Rational Group at the outset, utilizing a blend of liquid assets and deferred settlements. This February 1st deadline pertained to the balance of $200 million.
The Scheinbergs have consented to defer the deadline and “concurred to refrain from enforcing, throughout 2017, their entitlements under the initial consolidation contract to mandate Amaya to employ commercially sound endeavors to effectuate a cataloging of its stock to amass capital to finance any exceptional deferred acquisition cost installments.”
This novel pact with the Scheinbergs will furnish Amaya with some leeway to accumulate funds throughout 2017 to settle the debt entirely. This prevents the company from having to “shoulder supplementary term debt, alterations, or other associated outlays and expenditures.”
Amaya Inc. Chief Executive Officer, Rafi Ashkenazi, remarked…
We felt assured that our present strategy emphasizes the robust revenue stream created by our business structure. This enables us to fund ongoing achievements while simultaneously upholding our obligations to the former proprietors. Given our 2016 results, we are positive we can manage the outstanding installments as planned.
