Epic Poker has debt of $5 million to creditors

The Epic Poker League went out of business after filing for Chapter 11 bankruptcy.

However after announcing the bankruptcy, Federated Sports and Gaming, Epic Poker’s parent company, Executive Chairman Jeffrey Pollack said in a statement on the company website: “Our company needs a new start. This reorganization filing is an important first step in that direction.”

But it seems Pollack’s is very optimistic, considering court filings show that Federated Sports and Gaming has racked up huge debts in such a short time in operation, to date, reorganization plans have been rejected by the bankruptcy court.

Epic Poker ran only three poker tournaments, adding $400,000 to each prize pool and paying for TV time buys for the programming. It cancelled its fourth tournament, along with a fifth, which promised a $1 million freeroll for the league’s top 27 performers in the inaugural season.

Bankruptcy filings show more than 100 creditors are owed totaling more than $5 million.

Federated Sports and Gaming had, at the time of the filing, only $15,000 in cash in the bank.

The majority of Federated’s debt is owed to two companies; $2 million to Las Vegas-based regional casino operator Pinnacle Entertainment (PNK. NYSE) and more than $2 million to All In Production, the Fargo, N.D., company that agreed to sell Federated its Heartland Poker Tour last year.

Some of the significant creditors include television production company 411 Productions, $541,373, lawfirm Kirkland & Ellis, $250,000, public relations giant Rogers and Cowan, $71,391 and Savage Tournaments, $33,333. A number of Federated employees, smaller poker support companies, independent contractors and even the charitable Disabled American Veterans are listed as creditors.

Although Mr Pollack feels the company can be saved, with the debts overhanging the business, it seems most likely all of the creditors will never see their return.