The management board of Mybet Holdings on Tuesday confirmed an application to begin insolvency preceding is underway. This is because talks with its strategic investors broke down.
A statement released by the board indicated the company owes €4m (£3.5m/$4.5m) in sports betting taxes and faces “imminent illiquidity”.
On Friday, the board will submit an application covering all three of mybet’s German group companies to the applicable court.
The company had hopes of coming out of insolvency when it signed a “non-exclusive term sheet” with an anonymous investor for the B2C online business of the Berlin-based online sports betting and casino company last month.
“The background for the application for the opening of insolvency proceedings is the failure of discussions with potential investors,” the statement said.
“Today, the discussions with a strategic investor reported… on July 13 regarding the possible sale of the online business of mybet Holding under the domain www.mybet.com were closed.
“These talks failed due to conditions set by the investors which could not be fulfilled.”
According to the board, the company has reached the point of initiating an insolvency proceeding partly because of the Frankfurt Tax Office’s rejection of an application filed by the group’s Malta-based company, Personal Exchange International, to hold on an enforcement regarding outstanding sports betting taxes.
Mybet share price has plummeted since June 12, when the company announced that talks with a potential investor have halted due to “differences of opinion concerning the implementation of strategic and operational collaboration in the online sector” after days of talks.
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