UPDATED: 03/05/12
Details are emerging from Federated Sports+Gaming bankruptcy filing.
Wicked Chops Insider has obtained information from court records that indicate the company is in an even more dire financial position than first indicated.
FS+G listed 118 creditors in its filing (some of the listed are duplicates, bringing the real number closer to 100). Among those listed include a number of employees, 441 Productions (their production team), Rogers & Cowan (their PR agency), creativeputty (branding firm responsible for Epic), Disabled Veterans of America, and IAC.
According to court records, along with the $2M loan from Pinnacle Entertainment and $1.97M still owed to All In Production (Heartland Poker Tour) for the remainder of their not-fully-executed acquisition, FS+G also owes:
- 441 Productions: Approximately $550,000
- Rogers & Cowan: Approximately $70,000
- creativeputty: Approximately $39,000
- Kirkland & Ellis law firm: Approximately $250,000
- Disabled American Veterans: Approximately $10-25,000
FS+G had $15,000 in cash on hand when it filed for bankruptcy on Tuesday, February 28th.
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In total, FS+G raised approximately $10M in financing and are currently around $7M in debt. FS+G revenues (not including HPT) total approximately $5,000 per month and mostly come from their social media gaming app on Facebook.
The $2M bank note owed to Pinnacle Entertainment was set to mature on February 29th, 2012, the day after FS+G filed bankruptcy.
More details to come. However, given the current financial state of the company, the likelihood that any further overlays and $1M freerolls seems high unlikely–as do the chances that FS+G will be able to dig out of this mess.
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