Amaya Gaming Finalizes Deferred Payment Deal With Scheinbergs

Amaya
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  • PG News January 10, 2017
  • 1 Minute Read

There was some good news for Amaya Gaming this New Year. The Canada-based company will not have to issue new equity, as it was to close a deal to make deferred payment to PokerStars’ former owners i.e. Scheinbergs.

Amaya informed all its shareholders this week that it was able to work out a plan to repay the remaining $197.7 Million of the $4.9 Billion that was agreed upon for buying the Rational Group from the father-son duo of Isai and Mark Scheinberg in 2014.

Under the terms of the agreement, Amaya had paid Rational shareholders $4.5 Billion at the closing of the transaction, and were supposed to make a deferred payment of $400 million by February 1, 2017.

Amaya, who so long, was looking for “various non-dilutive options to pay the balance” by the due date, will now pay the nearly $200 Million outstanding over the course of this year from unrestricted cash on its balance sheet and cash flow from operations.

In lieu of agreeing to the new terms, Amaya will give the Scheinbergs three months of non-refundable late payment fees. These payments will be made in advance on February 1, with the possibility of additional fees should Amaya fail to make good on its new repayment commitments.

Amaya can now look forward to the New Year with new vigor especially after a turbulent last 12 months, during which the company lost its CEO to an insider trading scandal.

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