Mybet Holding’s management board has confirmed to reporters that it is currently in the preparation of an application for insolvency. The announcement for the insolvency proceedings was declared after talks with a strategic investor had failed.
The board stated to reporters that Mybet currently owes around $4.5 million in sports betting taxes, and that they are currently facing “imminent liquidity.” The applications will cover all three of Mybet’s German companies, and is set to be submitted to the local court within the next few weeks.
The announcement has come as a surprise to some, as the operator seemingly signed a non-exclusive term sheet with an investor that was not named, which was set to cover the online sports betting and casino operator’s B2C online businesses.
The company later explained in a statement to reporters that talks with the investor had fallen though, and that the insolvency application was a direct result of the failed negotiations. Another contributing factor to the insolvency proceedings is due to a rejection of an application to the Frankfurt Tax Office, which was filed by Personal Exchange International, a group based in Malta. The application was a request by Mybet to suspend the enforcement to pay that sports betting taxes that the operator owed.
Share price for Mybet hit an all-time low not long after the operator made the announcement that talks with a potential investor had not panned out as planned. Mybet services will continue to operate normally until further notice.
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