BetonSports Plc (BoS) may be able to repay some of its creditors after its Antiguan assets have been released by an Antiguan court.
BoS, along with 12 individuals, in June 2006 was indicted on federal racketeering charges in connection with taking bets from U.S. players. In May 2007, the company pled guilty to the charges and agreed to supply witnesses and evidence in the pending cases against the co-defendants, in exchange for immunity against future related charges being brought against BoS directors, past or present, not already charged.
The Antiguan High Court in December barred the company from, among other things, entering into any agreement or arrangement to sell, transfer or otherwise dispose of cash assets within or outside of the twin-island nation without the consent, management and supervision of the Financial Services Regulatory Commission (FSRC).
In May 2007, the company went into liquidation, hiring London-based Vantis Business Recovery Services (VBRS) to oversee the process.
According to court documents, the government of Antigua and Barbuda has requested that VBRS also handle the liquidation of BoS' Antiguan assets, which BoS attorney Jeffrey Demerath argued could contribute to his client's compliance with the plea agreement.
"This creates the possibility that funds may be collected from debtors of BoS (Antigua) which then could be used to repay some or all of the United States customers at least a portion of their claims," court documents quote Demerath as saying.
On the other hand, Demerath argued that the collection process could take months to complete, thus the continuance was needed.
U.S. District Court Judge Carol Jackson on Wednesday granted Demerath's motion to continue the sentencing hearing, originally scheduled for Friday, until June 23, 2008, but the defendants must submit progress reports on the collections to the court every 60 days from Dec. 20, according to court documents.
There has been no word on how the company's sentencing date would coincide with the trial for the 12 defendants indicted in the case.
Click here to view a copy of the motion to continue the sentencing hearing.
Click here to view a copy of Jackson's order granting the motion to continue the sentencing hearing.