China-based CRM and gambling technology vendor PacificNet has announced that three holders of PacificNet’s Convertible Subordinated Debentures filed an involuntary petition for Chapter 11 relief in federal bankruptcy court late Saturday, March 22^nd in Wilmington, Delaware.

 

“The company has retained counsel to oppose the filing because the petition fails to meet the standard for invoking an involuntary bankruptcy and fails to take into consideration other binding agreements between the company and the petitioning creditors that control

the relationships between them,” PacificNet officials said in a prepared statement. “The company intends to vigorously oppose the petition and move for dismissal of the filing, and, if successful, will seek damages and attorneys fees.”

 

The vendor “intends to take all appropriate actions and remedies regarding the involuntary petition,” said CEO Tony Tong. “We are working very hard with the advice of counsel to resolve this issue as soon as possible. We regret the action taken by these bondholders. However, we must be sure that any settlement reached is fair to all parties involved, including our shareholders. In the meantime, we will continue to operate as

usual with no changes to our day-to-day operations.”

 

Earlier this month, PacificNet announced the election of Stephen Crystal as a member of the Board of Directors. Crystal, who was elected as an Independent Director, is the Chief Executive Officer and President of TableMAX Holdings.

 

Crystal was previously a board member of Las Vegas Gaming, and co-founder of Barrick Gaming Corp.

 

Chairman and CEO of the China-based PacificNet, Tong welcomed Crystal to the company, which, in addition to selling CRM, sells gambling and mobile game technology with a focus on Asian, Latin American, and European markets.

 

In late January, PacificNet’s Take1 subsidiary completed the delivery of 2,000 gambling machines to a European gambling operator. “We anticipate continuous strong demand for our gaming machines for the European gaming market and repeat orders,” Take1 officials said.

 

Also in late January, PacificNet and Octavian reported “stronger than expected” customer turnout at their gambling product launches at the International Casino Expo in London.

 

On January 22, PacificNet and Octavian held a joint completion ceremony at the International Casino Expo, wrapping up PacificNet’s acquisition of 100 percent ownership of Octavian International Limited, which sells gambling technology.