Federated Sports and Gaming Company filed for Chapter 11 bankruptcy in Maryland early last week. The company is in need of a new start, according to the founder.
A former World Series of Poker Commissioner, he said the company began looking for a partner months before filing for bankruptcy but was unsuccessful, leaving Chapter 11 as a last hope for reorganization.
In light of financial difficulties, filing for bankruptcy was the first step in achieving the company's goals of recovery, which include keeping the Epic Poker League, an upstart company linked with Federated Sports and Gaming.
In addition to that project, the gaming company also owns the Global Poker Index, the Epic Poker League on Facebook, and the Heartland Poker Tour, among others.
As Maryland residents know, many people think of bankruptcy as the beginning of the end, but that simply isn't true. Often, bankruptcy is a much needed tool for companies to get their affairs in order and make a fresh start.
Chapter 11 can provide a business the time it needs to move forward in securing the help of a partner, which is just what Federated Sports and Gaming aims to do in the long run.
Business and commercial bankruptcy can be complicated, and business owners who are considering bankruptcy will want to be aware of all of their options in planning a reorganization of finances.
In the case of Federated Sports and Gaming, the future may still be uncertain, but thanks to the company's recent decision to file for bankruptcy, there is still hope for a brighter financial future.
Source: Ante Up, "Federated Sports+Gaming Files for Chapter 11 Bankruptcy; Exclusive with Duke and Pollack," Feb. 29, 2012
Source: Las Vegas Review Journal, "Epic poker league company files for bankruptcy," Howard Stutz, Feb. 29, 2012