Mybet headed for insolvency?

Struggling gambling group Mybet Holdings is reportedly headed for insolvency following the failure of its latest discussions with a potential investor, according to business media reports.

The company’s directors issued a statement Tuesday confirming that an application for insolvency is being prepared for submission to a local court later this week, and explained that the three subsidiaries in the German group owe Euro 4 million in taxes on sports betting which have placed its liquidity in peril.

Our readers may recall that prospects for the company appeared to take a positive turn last month when discussions took place regarding the disposal of the online sports betting and casino company’s B2C online business.

However, in its statement Tuesday the board revealed that the motivation for seeking insolvency was related to the failure of discussions with “potential investors” who apparently set conditions that “could not be fulfilled.”

The statement added that a contributory issue has been the rejection by the Frankfurt Tax Office of an application by the company’s Malta-based subsidiary Personal Exchange International to suspend enforcement of the outstanding sports betting taxes.

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