- Company working to resolve issues
- Company to operate as usual
BEIJING, March 28 /Xinhua-PRNewswire/ -- PacificNet, Inc. (Nasdaq: PACT), a leading provider of gaming technology, e-commerce, and Customer Relationship Management (CRM) in China, announced today that three holders of PacificNet's Convertible Subordinated Debentures filed an involuntary petition for Chapter 11 relief in federal bankruptcy court late Saturday, March 22nd in Wilmington, DE. 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. The Company intends to vigorously oppose the petition and move for dismissal of the filing, and if successful will seek damages and attorneys fees.
"PacificNet 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. "
About PacificNet
PacificNet, Inc. (Nasdaq: PACT) is a leading provider of gaming and mobile game technology worldwide. Having established itself with e-commerce and Customer Relationship Management (CRM) solutions for the Chinese market, the company has diversified to focus on systems and games development for the global gaming market. Through its highly experienced gaming subsidiaries including PactGames, Take1 Technologies and Octavian International, PacificNet is able to offer world-leading solutions in casino equipment supply and the development, installation and support of systems and game content for the casino, lottery and AWP markets. Positioning itself as the systems integrator for the gaming industry, with a special focus on the emerging markets, PacificNet enables customers to integrate gaming operations, linking electronic gaming machines, tables and larger networks so that operators can build efficient and highly attractive gaming operations that drive revenue growth and profit opportunity for operators and enhance the customer experience. PacificNet's gaming clients include leading hotels, casinos, and gaming operators in Asia, Europe, Latin America, Russia and other gaming markets around the world. The Company employs around 1,800 staff in its various subsidiaries with offices in Argentina, Australia, China, Colombia, Germany, Hong Kong, India, Italy, Russia, Ukraine, UK and the US.
Safe Harbor Statement
This Company's announcement contains forward-looking statements. We may also make written or oral forward-looking statements in our periodic reports to the SEC on Forms 10-K, 10-Q, 8-K, etc., in our annual report to shareholders, in our proxy statements, in press releases and other written materials and in oral statements made by our officers, directors or employees to third parties. Statements that are not historical facts, including statements about our beliefs and expectations, are forward-looking statements. These statements are based on current plans, estimates and projections, and therefore you should not place undue reliance on them. Forward-looking statements involve inherent risks and uncertainties. We caution you that a number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Potential risks and uncertainties include, but are not limited to, PacificNet's historical and possible future losses, limited operating history, uncertain regulatory landscape in China, and fluctuations in quarterly and annual operating results. Further information regarding these and other risks is included in PacificNet's Form 10K and other filings with the SEC.
