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Has Olympic Entertainment Brought Asset Shifting Tactics to Europe?

14 July 2020, 13:15
Votes: 1

According to recent news about gambling, the Olympic Entertainment bondholders worry about the current situation connected with the company’s assets.

Has Olympic Entertainment Brought Asset Shifting Tactics to Europe?

Novalpina Capital, a company that specializes in buyout investments and owns Olympic Entertainment as a subsidiary firm, seems to use unfair tactics to raise more money and benefit from assets. This scheme became possible now because of loosened credit financing terms.

The transaction was fraudulent

The thing is that Olympic Entertainment, which has more than one hundred casinos based in several countries, has suddenly decided to shift its assets to the organization that doesn’t have any relation to its credit contracts. It is worth mentioning that bondholders haven’t got any prior notice about the decision.

What does this situation mean to them? First of all, they won’t be able to reach assets if the firm turns bankrupt. Shareowners have got legal advice from lawyers who say that it is an unprecedented case in Europe where the credit market is more focused on supporting the rights of financial institutions. However, this practice has come from the USA that is more debtor-oriented.

Read more: The laws for gambling in Europe

Read more: What casino owners should know about gross gaming revenue

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