Yuri Itkis, the owner of FortuNet Inc. in Las Vegas is set to acquire the property of GameTech International Inc. of Reno, which has submitted a liquidation report with bank on 2nd July. A contract has been reached between the two thereby finalizing Itkis as the stalking horse bidder and hence the expected bargain hunter of its possessions.
Itkis produces bingo devices and video terminals similar to slot machine with profit returns of about $30 million per annum. He was not available at the moment for his remarks on the contract. The effect of the contract upon the clients, contractor workers and 107 employees of GameTech are not mentioned by any of the two companies. If some important modifications are made at GameTech, then they need consent of the gaming regulators of the region.
GameTech operates in 38 states, Indian gaming locations, Canada and Japan and has around 26% of the electronic bingo market. It faced financial crisis due to slump in the market and its expansion into the video lottery terminal trade in 2007.
By acquiring a loan worth $16.4 million in June from banks, Itkis prepared to obtain GameTech and will pay this amount to acclaim the tender in the forthcoming public sale of the possessions of GameTech. He has also consented to pay additional amount worth $2.5 million to help the creditors. If any other company wants to purchase the assets of GameTech, then it will have to surpass the stalking horse proposal by the closing date i.e. Friday.
Due to privatization of FortuNet, its financial figures are not revealed publicly. But its profit returns were around $15.6 million per annum in 2009, during public operations.
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