Premierbet assets sold to Jenningsbet

21-12-2008: Begbies Traynor, the administrators called by IGH for Premierbet, formulated last week their proposal to creditors, revealing some interesting details about the sale of Heathorns to JenningsBet, which first of all didn\’t happen in November as we originally reported but was agreed on October 24 and included the transfer of the Premierbet business as a way of hive down agreement.
According to the terms of the sale, the vendors received a £1 million loan note. Once apportioned across the assets sold, around £33,000 have been paid to Premierbet, which summed to the £34,000 the online bookmaker had in bank deposits, resulted in a grand total of £67,000. Not even enough to pay the administrators who have an hourly rate of around £300 per hour.
Begbies Traynor also estimate to realize a benefit of tax loss for £885,000, but we\’ve no idea if this could be used for payments to players, which according to the administrators are owed less than £300,000 all together.
UPDATE 26-01-2008: Following the meeting of creditors, Begbies Traynor said that their proposal has been approved and that they will make a distribution to any preferential creditor as well as an application to the court for the payment to unsecured creditors (the players) of up to 50% for the first £10,000 and 20% of the remaining net property (if any) up to £600,000.